Organizations That Stimulate Innovation Have

question 14

Multiple Choice

Organizations that stimulate innovation have:

• A) a generalist division of labor.
• B) decentralized authority.
• C) limited bureaucracy.
• D) all of these

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Definitions:

Ronald Coase

A British economist known for his work on transaction costs, property rights, and the theory of the firm.

Negative Externalities

Unintended and unfavourable outcomes or costs imposed on a third party not involved in a transaction or activity.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often leading to underproduction of the good or service in absence of intervention.