Which of the Following Is True of the Random Method

question 28

Multiple Choice

Which of the following is true of the random method of decision making?

• A)It is an ideal approach in organizations that favor rational methods.
• B)It is less likely to yield breakthrough decision making.
• C)It occurs when there is little or no agreement on goals.
• D)It occurs when extensive knowledge is available.

Understand the calculation and implications of transfer pricing within decentralized organizations.

Recognize the challenges and benefits of decentralization, including potential suboptimal decisions and duplication of services.

Identify the factors influencing the establishment of transfer prices and their impact on organizational goal congruence.

Understand the concept of opportunity cost and its significance in managerial decision making.

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Definitions:

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of human beings.

Intimacy Vs. Isolation

A stage in Erik Erikson's theory of psychosocial development where individuals face the challenge of forming close relationships or experiencing loneliness and isolation.

Identity

The qualities, beliefs, personality, looks, and expressions that make a person (self-identity) or group (particular social category or social group).

Basic Trust

denotes an essential sense of security and confidence in the world, typically developed during infancy, as described by Erik Erikson.