Which of the Following Statements About the Strategic Reference Point

question 25

Multiple Choice

Which of the following statements about the strategic reference point theory is true?

• A) The theory does not consider risk factors.
• B) The theory is deterministic.
• C) The theory may lead to bureaucratic management.
• D) This theory recommends that managers do not change strategic reference points.
• E) None of these statements about the Strategic Reference Point Theory is true.

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Definitions:

Normal Good

A good for which demand increases when consumer income rises, and decreases when consumer income falls.

Inferior Good

A type of good whose demand decreases when consumer income rises, contrary to normal goods, which see increased demand as incomes rise.

Inferior Good

A type of good whose demand decreases when the income of consumers increases.

Normal Good

An item whose demand escalates as the income of consumers increases, and contracts when their income decreases.