_____ Argues That the Background Characteristics of the Top Management

question 76

Multiple Choice

_____ argues that the background characteristics of the top management team can predict organizational characteristics and set standards for values, competence, ethics, and unique characteristics throughout an organization.

• A)Upper echelon theory
• B)Bounded rationality theory
• C)Cognitive dissonance theory
• D)Classic economy theory

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Definitions:

Business Environment

Refers to the external and internal factors that influence the operations and success of a company, including competition, economic trends, and regulations.

Line Organization

A direct and clear structure where authority flows vertically from the top management down to the lower levels.

Chain of Command

The official hierarchy within an organization that dictates the authority, responsibility, and communication flow among its members.

Line Departments

Parts of an organization directly involved in its primary revenue-generating activities, typically involved in the production, sale, or provision of services.