Conflicts can arise between divisions because
a. some activities across divisions benefit from coordination
b. managers of profit centers care too little about the effects of their decisions on other divisions
c. managers are rewarded only for how well their own division is run
d. all of the above
Question 2
Managed care
a. establishes a system of retrospective payment determined ex ante.
b. combines the responsibilities of payer and provider of medical services.
c. attempts to shift a portion of the financial risk onto providers.
d. attempts to shift a portion of the financial risk onto patients.
e. Both b and c are correct.
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