If the Entrepreneur Is Also the Manager of the Firm

question 272

Multiple Choice

If the entrepreneur is also the manager of the firm, we would expect

• A) the manager to work hard because he or she is also the residual claimant.
• B) the manager to not work hard since there is no possibility of further advancement.
• C) the firm to operate poorly because the specialization of labor is not adequate.
• D) the firm to operate poorly because the entrepreneur is not as good at managing workers as a professional manager would be.

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Definitions:

Hearing Voices

The experience of hearing sounds, particularly voices, when no external sound is present, often associated with certain mental health conditions.

Schizophrenic

Relating to schizophrenia, a mental disorder characterized by abnormal behavior, strange speech, and a decreased ability to understand reality.

CIA Agents

Members of the Central Intelligence Agency, an American intelligence service, responsible for gathering, processing, and analyzing national security information from around the world.

Paranoid Schizophrenia

A subtype of schizophrenia characterized by prominent delusions or auditory hallucinations in the context of a relative preservation of cognitive functioning and affect.