John Black, a Management Consultant, Successfully Implemented and MBO Program

question 13

Multiple Choice

John Black, a management consultant, successfully implemented and MBO program on his first consulting job. He now recommends MBO to all his clients. In so doing, our text would say the main point is that he is ignoring:

• A) The latest techniques for solving problems.
• B) The principles of contingency theory.
• C) The external environment of the organization.
• D) The internal environment of the organization.

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Definitions:

Primary Source of Revenue

The main activity or operation that generates the majority of a company's income.

Wholesaler

A person or company that buys goods in large quantities from manufacturers and sells them in smaller amounts to retailers or professional users.

Sale of Merchandise

The transaction process that occurs when a business sells its products, typically recorded as revenue on the income statement.

Gross Profit

The difference between total revenue and the cost of goods sold, representing the basic profit from sales before deducting any operating expenses.