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Alternative Theories Of The Firm

Behavioral theories of the firm concentrate on the ……. interests of …….?

A. common; different parts of the firm
B. common; mangers
C. conflicting; managers
D. conflicting; different parts of the firm

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Galbraith’s idea that firms are controlled by a technostructure supports ……… theories?

A. Williamson’s
B. classical economic
C. Marxist
D. monetarist

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Firms that engage in satisficing behavior are likely to be ?

A. Like other firms in their industry.
B. growth maximisers.
C. leading firms in their industry
D. unlike other firms in their industry

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If firms satisfice this means that ?

A. managers need to be paid enough to stop them leaving the company
B. objectives such as profit are not maximized
C. short-run profits are maximized
D. long-run profits are maximized

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Sales maximization is likely to take place in markets that are ?

A. contestable
B. perfectly competitive
C. oligopolistic
D. export-oriented

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The merger of fiber producer and a clothing firm would be ….. merger?

A. horizontal
B. vertical
C. conglomerate
D. homogeneous

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The merger of two clothing firms would be a …. merger?

A. horizontal
B. vertical
C. homogeneous
D. conglomerate

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Identify below those who are not stakeholders in a company ?

A. Owners
B. Customers
C. Employees
D. None of the above

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Which of the following is NOT a common reason for a merger?

A. To increase competition
B. To reduce uncertainty
C. To achieve faster growth
D. To achieve economies of scale

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When firm build in Organizational slack they do this in order to ?

A. cope with unforeseen changes
B. maximize growth.
C. minimize conflict within the firm
D. both options one and three

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