Which Three of the Following Are Likely to Result from Managers

question 5

Multiple Choice

Which three of the following are likely to result from managers focusing on accounting rates of return?

• A) Short- termism
• B) Extensive investment in the long term
• C) Reduction in value in the long- term
• D) Reluctance to invest in new equipment

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Definitions:

Contingency Approach

A management theory that suggests the most appropriate form of decision making is contingent upon the internal and external situation.

Situational View

An approach that suggests the effectiveness of management techniques depends on the specific circumstances or situation at hand.

Closed-System Thinking

An approach that views organizations as systems that are relatively independent of environmental influences, focusing instead on internal dynamics and efficiency.

Contingency View

A management theory that suggests the optimal course of action depends on the specific internal and external circumstances faced by an organization.