Which of the Following Statements Relative to the Theory and Practice

question 101

Multiple Choice

Which of the following statements relative to the theory and practice of management is TRUE?

• A) Academic theories have little application in business because they are not grounded in reality.
• B) The value of theory is that it provides a systematic framework for management activities.
• C) Theory is,by definition,very abstract and quite difficult to understand.
• D) Managers never develop their own theories of how to run an organization.
• E) Management theories tend to be mutually exclusive.

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Definitions:

Wage-Price Spiral

A situation where rising wages lead to higher prices, which in turn lead to demands for even higher wages, creating a cycle of inflation.

Joseph Schumpeter

An economist known for his theories on economic development and creative destruction.

Theory of Innovations

A conceptual framework that explains how new ideas, products, and practices spread within a society or from one society to another, often driving economic growth and social change.

Unemployment Insurance Benefits

Financial payments made by the government to individuals who are unemployed and meet certain eligibility requirements.