In Management Compensation, the Use of the Balanced Scorecard Achieves

question 84

Multiple Choice

In management compensation, the use of the balanced scorecard achieves:

• A)Fairness.
• B)Alignment of manager's incentives and the organization's strategy.
• C)The desired ethical environment.
• D)Revenue generation and cost control.
• E)A specific non-financial measurement.

Understand the concept and characteristics of monopolistic competition.

Comprehend how product differentiation impacts market structure in monopolistic competition.

Identify the implications of market structures on firm's output and pricing decisions.

Recognize the role of non-price competition in monopolistic competition.

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Definitions:

Inelastic Demand

A situation in which demand for a good or service is barely affected by changes in price.

Elastic Demand

When consumer demand for a product significantly rises or falls following a small change in its price.

Price Discrimination

The practice of selling the same product to different buyers at different prices, based on factors other than cost.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the actual amount they pay.