The Use of Market Control Mechanisms Has Been Criticized by Those

question 65

Multiple Choice

The use of market control mechanisms has been criticized by those who believe that

• A) They rely too heavily on rules and procedures.
• B) Economic measures do not adequately reflect the complete value of an organization.
• C) They are too dependent on the organizational culture.
• D) Hierarchical structure is the only valid way to determine the future success of an organization.
• E) Decision making and power are too centralized when they are in use.

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Definitions:

Compound Interest

This refers to the calculation of interest on the beginning balance of a loan or deposit, adding in the interest that has built up over time from prior periods.

Present Value

The value as of now of a future amount of money or subsequent cash flows, based on a chosen return rate.

Compound Interest

Interest that is determined by taking into account not only the original principal of a deposit or loan but also all the interest that has been compounded in previous cycles.

Earnings Rate

The return on an investment or the amount of profit made compared to the amount of money invested.