Exquisite Expressions Is a Home Decorating Company That Sells Many

question 157

Multiple Choice

Exquisite Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers.Dora is the CEO of the company.She feels that there is not enough specialization within the company and wants to organize the business in a different way.Dora thinks that the company would be more effective if it were to switch to a new way of organization.For example,there could be a manager in charge of the candles,a different manager in charge of the entertainment centers,and so on.
Another issue that Dora wants to resolve is that of delegation.She believes that if she could improve her delegating,employees would feel more empowered and want to go above and beyond what they are required to do.There are certain reasons that Dora has a hard time delegating to others,but she is confident that the problem will be overcome if she works on it.
-Refer to Exquisite Expressions.Dora should address all of the following when it comes to organizing the business except

• A) job design.
• B) regulating behavior.
• C) establishing a chain of command.
• D) departmentalization.
• E) delegation.

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Definitions:

Short Run

A period of time during which at least one input, like equipment or labor, is fixed while others can be varied to change output levels.

Automatic Market Adjustments

The self-regulating behavior of markets where prices and quantities adjust to changes in demand and supply conditions without external intervention.

Purely Competitive Firm

A market structure where firms are price takers and sell homogeneous products with many buyers and sellers, leading to perfect competition.

Economic Profit

The contrast between a company's overall receipts and its full charges, considering both palpable and inferred costs.