Qatar Computers Is a Family-Owned Business Based in Doha

question 23

Multiple Choice

Qatar Computers is a family-owned business based in Doha. Due to substantial recent growth, the company needs to reassess its organizational structure.
-Until now all decision making has been centralized, with important decisions taken by the CEO of Qatar Computers. The company is considering becoming more decentralized because ______ .

• A) the span of control is currently too narrow
• B) this is likely to lead to higher job satisfaction of employees
• C) the current CEO is unreliable
• D) non-family members will not have as much power
• E) managers need more training

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Definitions:

Price Discrimination

The approach of pricing the same item differently for various consumer segments, typically depending on how much they are prepared to spend.

Consumer Surplus

An economic measure of consumer benefit, calculated by analyzing the difference between what consumers are prepared to pay for a good or service relative to the market price.

Deadweight Loss

An economic inefficiency that occurs when a market is not in competitive equilibrium, leading to a loss of economic value.

Price Discriminate

A pricing strategy where the same product or service is sold at different prices to different customers, based on their willingness to pay.