Suboptimization Occurs When

question 103

Multiple Choice

Suboptimization occurs when

• A) a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units to the detriment of the organization as a whole.
• B) there is a failure to produce at or near full capacity.
• C) individuals are placed into positions not suited to their abilities.
• D) managers tend to focus more of their attentions on those aspects which are measurable than on those which are not.
• E) managers concentrate too much on short-term performance objectives.

---

Definitions:

Incorporators

Individuals who sign the articles of incorporation for a corporation, effectively bringing it into existence under the law.

Corporate Articles

Legal documents filed with a state government to formally establish the existence of a corporation.

Incorporation

The process of legally declaring a corporate entity as separate from its owners.

Outside Director

A member of a company's board of directors who is not part of the company's executive staff and is theoretically impartial.