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.

---

Definitions:

Constitution

Core tenets or long-standing norms that guide the governance of a state or similar entity.

State Governments

The governing bodies of individual states within a federation, responsible for legislating and implementing state-specific laws and regulations.

Eminent Domain

The right of a government to expropriate private property for public use, with compensation to the owner.

Governmental Taking

The act by a government of seizing private property for public use, typically with compensation, under the right of eminent domain.