When Decision-Making Power Is Concentrated in the Hands of a Few

question 13

Multiple Choice

When decision-making power is concentrated in the hands of a few people that hold the top positions in an organisational hierarchy, the result is a state of

• A)oligarchy.
• B)alienation.
• C)disenchantment.
• D)trained capacity.

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Definitions:

Wage Insurance

A form of financial protection that provides workers with a portion of their earnings difference if they lose their job and find a new one at a lower wage.

Moral Hazard

A situation in which one party is more likely to take risks because they do not bear the full consequences of their actions, often due to asymmetric information or where one party is protected in some way from the risks they take.

Traditional Retirement Plan

A retirement savings plan that offers tax advantages to the saver, often involving tax-deferred growth until withdrawals.

Postpone Taxes

A financial strategy that seeks to delay the payment of income taxes on earnings through various tax-advantaged accounts or investments.