Which of the Following Is NOT Descriptive of the Purpose

question 40

Multiple Choice

Which of the following is NOT descriptive of the purpose of MBO?

• A) MBO provides an opportunity for the corporation to connect the objectives of people at each level to those at the next higher level.
• B) MBO operates independently and requires very little supervision or administration.
• C) The goals at each level ideally contribute directly towards overall organizational objectives.
• D) MBO provides a potential method of integrating the physical, financial and human resource plans of an organization as it relates to the goals of the individual.
• E) MBO ties the corporate, business, and functional objectives together along with the strategies used to achieve them.

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Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to specialized production and trade.

Absolute Advantage

A situation in which a country, individual, or company can produce a good at a lower cost per unit than competitors.

Opportunity Cost

The price paid for not choosing the second-best option during decision-making.

Higher Opportunity Cost

The increased potential loss of choosing one option over another, indicating a sacrifice of higher value alternatives.