Gabriella Recently Accepted a Job with a Large Insurance Firm

question 35

Multiple Choice

Gabriella recently accepted a job with a large insurance firm as an internal auditor.Gabriella has found that her new job is quite different than the internship she had at an accounting consulting firm.The insurance firm has strictly defined job responsibilities and lines of communication.It seems that for every decision that Gabriella needs to make,approval must be obtained from upper management! Overall,she has found the atmosphere to be quite formal as compared to the internship.Gabriella has correctly concluded that of the following choices,the insurance firm has

• A)a wide span of control.
• B)a high degree of centralization.
• C)decentralized authority.
• D)a matrix design.
• E)an ineffective staff.

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Definitions:

Indifference Curves

Curves that represent the locus of various points indicating combinations of goods giving equal satisfaction and utility to the consumer.

Inferior Good

A category of product that sees reduced demand as the income levels of buyers rise.

Normal Good

A normal good is one for which demand increases as the income of consumers increases.

Optimal Consumption

The consumption mix that provides the highest satisfaction or utility level to an individual, given their income and prices.