Which of These Statements About Driving Forces Is FALSE

question 135

Multiple Choice

Which of these statements about driving forces is FALSE?

• A)Many driving forces are unknown to employees beyond the top ranks of the organization.
• B)Some driving forces,such as the existence of a competitor,are well known to employees.
• C)Driving forces should be created by leaders if there are no reasons for change.
• D)Customer expectations represent a powerful driver for change.
• E)Organizational change is more likely to occur if employees experience reasonably strong driving forces.

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Definitions:

Asymmetric Information

A situation in which one party to a transaction has more or superior information compared to another.

Moral Hazard

The situation where one party is more likely to take risks because they do not bear the full consequences of those risks.

Hidden Action

A situation in contract theory and economics where one party's action is not observed or cannot be monitored by another, potentially leading to moral hazard.

Moral Hazard

The situation in which one party engages in risky behavior knowing that it is protected against the consequences, usually due to a contract or agreement.