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Getting Divisions to Work in the Firm’s Best Interests

xInstructions

Complete the individual problems and submit your solutions using Turnitin. It is not necessary to restate the exercise/prompt, but to provide a thorough write-up of your response/solution. Submit answers only in a Word document or PDF. Use APA format for all external references.

Chapter 21: Getting Employees to Work in the Firm’s Best Interests

21-1 Real Estate Agents

When real estate agents sell their own, rather than clients’, houses, they leave the houses on the market for a longer time (10 days longer on average) and wind up with better prices (2 percent higher on average). Why?

Chapter 22: Getting Divisions to Work in the Firm’s Best Interests

22-2 Transfer Prices Set by Headquarters

List three reasons why it might be a bad idea to have corporate headquarters set transfer prices.

Chapter 23: Managing Vertical Relationships

23-2 Integration of Physician Groups and Testing Services

Under a proposed healthcare reform, doctors’ fees will be capped at 80 percent of their current rate, but doctors can order blood tests that will be reimbursed at 90 percent of the current rate. How does vertical integration of physician groups into testing services increase profits?

23-4 Wedding Dresses

Stores that sell wedding dresses do not typically permit photos, and do not have tags on the dresses that would identify the manufacturer and style type. What is the purpose of these rules? Suggest one other way of accomplishing the same objective.

Parameters: Submit a Word document or PDF and use APA format. No handwritten submissions.

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