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:

Underextension

A cognitive error observed in language development, where a child applies a word too narrowly, using it for one object instead of all objects of that category.

Fast Mapping

The process by which children are able to learn the meaning of new words quickly by making logical assumptions after a minimal exposure.

Fast Mapping

The process by which children rapidly learn a new word after a brief encounter.

Logical Reasoning

The process of using rational, systematic steps based on sound mathematical procedures and given statements to arrive at a conclusion.