As a Strategic Issue, "Budget Slack" Could Represent A

question 81

Multiple Choice

As a strategic issue, "budget slack" could represent a:

• A) Very minor issue in most firms.
• B) Self-correcting problem over several operating periods.
• C) Problem only in a decentralized management environment.
• D) Lower overall level of expected performance than is achievable.
• E) Significant increase in the relative risk aversion of managers.

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Definitions:

Goods

Tangible commodities or products that are produced, bought, and sold to satisfy wants or needs.

Environmental Uncertainty

The degree of unpredictability and complexity in an organization's external environment, influencing strategic planning and decision-making.

Complexity

The state of having multiple interconnected parts, making a system or problem difficult to understand, predict, or manage.

Rate Of Change

A measure that calculates the percentage change in the value of a specific variable within a specific period.