More External Monitoring Is Needed When the ________

question 65

Multiple Choice

More external monitoring is needed when the ________.

• A) organization is highly dependent on outsiders
• B) environment is relatively stable
• C) organization faces minimal competition
• D) organization is relatively self-sufficient

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Definitions:

Uneconomic Substitution

Involves replacing one factor of production with another in a way that leads to inefficient or increased costs.

Creative Accounting

The manipulation of financial records and reports to give a more favorable image of a company's financial position than is justified.

Regulation

involves the establishment of rules or laws designed to control or govern conduct, typically enacted by a government body.

Natural Monopoly

A market condition where a single firm can supply a good or service to an entire market at a lower cost than what two or more companies could.