Modern Theories of the Firm Are Based on the Hypothesis

question 60

Multiple Choice

Modern theories of the firm are based on the hypothesis that:

• A)employees choose actions which maximize the firm's profits.
• B)given any bundle of inputs, the maximum possible output is produced.
• C)firms cannot recognize Pareto- preferred organizational forms.
• D)employees pursue their own self- interest.

Comprehend the essence and applications of contingency thinking in management.

Identify and differentiate between various organisational subsystems and their roles.

Grasp the ethical considerations and decision-making imperatives for 21st-century managers.

Appreciate the impact of dynamic and changing environments on organisational strategy and operations.

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Definitions:

Motion

The act or process of transferring or being transferred from one place to another.

Pool Table

A table with a flat surface and raised edges, equipped with pockets, used for playing billiards or pool.

Luminous Rectangular Frame

A framework or structure, often made of metal or plastic, that surrounds a light-emitting device, creating a bright rectangular display.

Induced Motion

The visual perception where motion is attributed to a stationary object while the observer is actually moving.