External Environmental Factors That May Affect Managerial Discretion Include Industry

question 141

True/False

External environmental factors that may affect managerial discretion include industry structure, rate of market growth, and degree to which products an be differentiated.

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Definitions:

Moral Hazard

The risk that one party to a contract can change their behavior to the detriment of another after the contract has been concluded, particularly where one party bears the cost of those actions.

Uncertainty

A state of having limited knowledge where it is impossible to exactly describe existing states or future outcomes.

Incentive Compensation

A form of payment designed to motivate and reward employees for exceeding specific performance goals.

Compensation

Payment or benefits provided to employees in exchange for their labor or services, including salaries, wages, and benefits packages.