A Manager Makes a Decision That Is Beneficial for a Specific

question 22

Multiple Choice

A manager makes a decision that is beneficial for a specific investment center and for the entire organization. From the organization's perspective, this decision results in:

• A) goal congruence.
• B) decentralization.
• C) contingent compensation.
• D) fixed compensation.

Identify the basic legal forms of business enterprise and their characteristics.

Recognize the characteristics and implications of different ownership structures on liability and income distribution.

Understand the principal-agent problem and its impact on corporate governance and executive compensation.

Learn about the conditions facilitating the ease of raising equity capital for various business structures.

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Definitions:

FOXP2 Gene

A gene associated with language and speech development in humans, mutations in which can lead to speech and language disorders.

Cerebral Blood Flow

The movement of blood through the network of blood vessels in the brain, critical for delivering nutrients and oxygen while removing wastes.

Natural Selection

The process by which heritable traits that confer a survival or reproductive advantage become more common in a population over generations.

Vocal Learning

The ability to modify sounds and create new combinations and patterns based on hearing them from others.