The Plan of an Organization That Contains Top Management's Decisions

question 67

Multiple Choice

The plan of an organization that contains top management's decisions about the organization's mission, goals, strategy, and structure is an example of a ________-level plan.

• A)corporate
• B)divisional
• C)functional
• D)business

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Definitions:

Economic Profit

The discrepancy between sum revenue and sum expenses, taking into account both acknowledged and assumed costs.

Principal-Agent Problem

A dilemma in relationships when one party (the agent) is expected to act in the best interest of another (the principal), but has the potential to act in their own self-interest instead.

Stockholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly dividends based on the company's performance.

Profit Maximization

A process or strategy used by businesses to achieve the highest possible profit, considering revenue and costs.