JayLo Corporation Has Experienced Rapid Growth During Its Five Years

question 120

Multiple Choice

JayLo Corporation has experienced rapid growth during its five years of existence.While still relatively small,JayLo is now big enough that Jennifer,the firm's CEO,has decided to organize the firm into functional departments.Jennifer can likely expect which of the following to occur?

• A)Quick company response to a change in the business environment
• B)Excellent communications between different departments
• C)Increase in scope of the performance of functions
• D)Opportunities for employees to develop their skills in depth

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Definitions:

Principal-Agent Problem

An economic conflict where an individual (the agent) has the responsibility to act for the benefit of another party (the principal), but might fail to do so because of differing interests.

Representative Democracy

A form of government where citizens elect officials to represent their interests and make decisions on their behalf in the legislative process.

Private Business

A business entity owned and operated by private individuals, not controlled by the government, and aimed at earning profit.