The Same Environmental Trend Can Often Have Very Different Effects

question 11

True/False

The same environmental trend can often have very different effects on firms within the same industry.

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Definitions:

Agency Problem

arises in situations where there is a conflict of interest between the principals (owners) and agents (managers) of an organization, leading to potential difficulties in aligning their goals.

Conflict of Interest

A situation where a person's personal interest could potentially interfere with their professional duties or responsibilities, leading to compromised decision-making.

Motivation

Is the set of forces that causes people to behave in certain ways. Individual motivation is also a major determinant of individual performance, but motivation is at the heart of what causes an employee to choose to expend the effort that will support any organizational activity.

Forces

Elements or factors that influence or drive changes within a social, physical, or business environment.