Which of the Following Terms Refers to the Efforts by Organizational

question 60

Multiple Choice

Which of the following terms refers to the efforts by organizational members to seek resources and achieve desired goals through informal systems and structures?

• A) Formal systems
• B) Informal systems
• C) Legitimate powers
• D) Self-interested politics
• E) Organizational politics

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Definitions:

Adverse Selection

A situation in insurance and finance where higher-risk individuals are more likely to apply for or select a particular service, leading to potential losses for the insurer or lender.

Hidden Actions

Pertains to situations in principal-agent relationships where agents' specific actions are not observable by the principal, leading to a moral hazard.

Hidden Information

Information that is not known to one party in a transaction, which can lead to an imbalance of power or adverse selection.

Moral Hazard

A situation where one party is more likely to take risks because another party bears the consequences of those risks, often arising in insurance and finance contexts.