In Using MBO, Objectives Should Be Set by The

question 89

Multiple Choice

In using MBO, objectives should be set by the:

• A) supervisor.
• B) employee.
• C) supervisor and the employee jointly.
• D) accounting department.
• E) top management.

---

Definitions:

Economic Profit

The total revenue of a firm minus its explicit and implicit costs, representing the surplus generated beyond the opportunity cost.

Marginal Revenue

The increase in earnings from the sale of one additional unit of a good or service.

Competitive Price-Taker

An enterprise that is unable to dictate the market price and thus must conform to the current market price for its offerings.

Monopoly

A market structure where a single supplier dominates the market, often leading to higher prices and less innovation due to lack of competition.