Which of the Following Is True of a Network Organization

question 70

Multiple Choice

Which of the following is true of a network organization?

• A) A network organization limits the amount of information shared between its members.
• B) In a network organization, the technical specialization of the functional structure is absent.
• C) A network organization lacks the market responsiveness of the product structure.
• D) In a network organization, managers within the organization interact closely with members outside it.
• E) A network organization is a single firm in which jobs are specialized and grouped according to business functions.

Understand the concept of moral hazard as a post-contractual problem.

Grasp the concept of adverse selection as a pre-contractual problem.

Identify the types of problems in principal-agent relationships.

Recognize the importance of information gathering in solving agency problems.

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Definitions:

Hail

Frozen precipitation in the form of balls or irregular lumps of ice, often occurring during strong thunderstorms.

Monetary Compensation

Financial payment provided to an individual for services rendered, such as a salary, wages, or benefits.

Breach of Contract

Not meeting any provision of a contract, be it written or spoken, without an acceptable legal justification.

Principle of Mitigation

The legal obligation on a party suffering loss to take reasonable action to minimize the amount of the loss suffered.