The Use of Budgets in a Vertically Integrated U-Form Organization

question 45

True/False

The use of budgets in a vertically integrated U-form organization can lead functional managers to overemphasize short-term behavior that is easy to measure and underemphasize longer-term behavior that is more difficult to measure.

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Definitions:

Socialist systems

Economic and political systems where the means of production, distribution, and exchange are owned or regulated by the community as a whole.

Totalitarian systems

A political system where the state recognizes no limits to its authority and strives to regulate every aspect of public and private life wherever feasible.

Healthy individualism

The concept that promotes the development of one's individual traits and values in a balanced manner, advocating for personal growth while considering the well-being of others.

Organic solidarity

A concept in sociology introduced by Émile Durkheim that describes the social cohesion based upon the dependence individuals have on each other in more advanced societies.