Incentives That Focus Only on the Local Impact of an Action

question 8

Multiple Choice

Incentives that focus only on the local impact of an action result in decisions that

• A)do not maximize total supply chain profits.
• B)maximize total supply chain profits.
• C)minimize total supply chain profits.
• D)minimize total supply chain cost.

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Definitions:

Resource Dependence

A theory asserting that organizations depend on resources from their environment and must manage dependencies and relationships with those who control those resources.

Higher Status Organization

An organization perceived to have greater prestige, authority, or influence compared to others in a similar sphere.

Association

A connection or relationship between two or more concepts, objects, or people.

Alliance

A formal agreement or partnership between individuals, organizations, or countries to achieve mutual goals.