Which of the Following Is NOT an Advantage That a New

question 24

Multiple Choice

Which of the following is NOT an advantage that a new CEO has over a predecessor?

• A) They can create energy for change within the organization
• B) They can focus on problems that may have been ignored in the past because hey involve organizational "sacred cows"
• C) They are unhampered by adherence to past organizational practices
• D) Employees are often receptive to change

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Definitions:

Productively Efficient

This refers to a situation where a firm produces goods at the lowest possible cost.

Allocatively Inefficient

A situation where resources are not allocated to produce the mix of goods and services that most benefits society or meets consumer preferences.

Allocatively Efficient

An allocation status of resources where enhancing the welfare of one party means diminishing that of another.

Productive Inefficiency

A situation where resources are not utilized in the best possible way, leading to wasted potential output or higher costs than necessary.