The Senior Manager at a fiRm Sets a Sales Target

question 22

Multiple Choice

The senior manager at a firm sets a sales target of 20 000 units for the month. Most other firms in the market also have similar targets. However, the maximum possible sales in the market was found to be 35 000 units per month. This suggests that:

• A) growth maximization is the firm's goal.
• B) the firm does not have principal-agent problems.
• C) the senior manager exhibits satisficing behaviour.
• D) salaries at this firm are linked to profits.

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Definitions:

Single Individual

Refers to one person, often in contexts emphasizing the role or impact of just one member within a larger group or system.

Closed Receivership

A legal process where a court appoints a receiver to manage the affairs of a financially troubled company, with the aim of paying off its debts.

Corporate Governance

The set of rules, practices, and processes used to direct and manage a corporation, aiming to balance the interests of various stakeholders.

Bylaws

The set of rules and regulations that govern the internal management of an organization or corporation.