A Privately Owned Firm That Is Regulated by the Government

question 80

Multiple Choice

A privately owned firm that is regulated by the government is very similar to a firm that the government owns because

• A) both make economic profits.
• B) neither has a profit motive.
• C) both minimize costs.
• D) both result in no deadweight loss.
• E) neither earn economic profits.

Identify and apply the core goals of the field of organizational behaviour.

Explain the role of contingency in management and organizational behaviour.

Understand the significance of the Hawthorne studies in the human relations movement.

Understand the concept and implications of barter in different economic systems.

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Definitions:

Implied Authority

Powers not explicitly stated but inferred from a person's position or conduct, allowing them to perform tasks necessary to effectively execute their duties.

Legal Effect

The consequence(s) a law or regulation imposes on an individual's rights, duties, or privileges.

Third Parties

Entities or individuals that are not directly involved in a legal contract or agreement but may be affected by its outcomes.

Undisclosed Principal

A situation in a contractual agreement where an agent acts on behalf of a principal, but the identity of the principal remains unknown to the third party.