The Use of Hierarchies Is Common in the Modern Corporation

question 8

Multiple Choice

The use of hierarchies is common in the modern corporation:

• A) because of the principle of comparative advantage.
• B) because of the principle of separation of decision management and decision control.
• C) to avoid collective action problems.
• D) to enhance employee buy-in.

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Definitions:

Knowledge

is the understanding, awareness, or familiarity gained through experience or education.

Anticipation Stage

The phase of preparing mentally and emotionally for a future event or outcome.

Critiquing Assumptions

The practice of examining and challenging underlying beliefs or taken-for-granted ideas to evaluate their validity.

Clarifying

The process of making something understandable or clear, often by explaining it in more detail.