At Opnic Corp

question 49

Multiple Choice

At Opnic Corp.,a cross-functional team is formed to work on a project for a new client.The team consists of Darius and four other members.At most of the team's presentations to senior management,Darius takes the lead and discusses project specifics with the management,while others chip in with additional information.At the completion of the project,Darius is recommended for promotion,while the other team members receive little recognition for their hard work.The reality is that Darius did very little actual work but spent some time compiling the project report based on different documents submitted by the others.This scenario at Opnic Corp.is a typical consequence of

• A) moral hazard.
• B) adverse selection.
• C) shared value creation.
• D) corporate governance.

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Definitions:

Total Costs

The sum of all costs associated with producing a good or service, including both fixed and variable costs.

Industry Expansion

The growth or increase in size and operations of an industry due to higher demand, technological advancements, or other factors.

Positive Revenues

Positive revenues refer to the income generated from sales, services, or other business activities before any expenses are subtracted, indicating a gross inflow of economic benefits.

Resources Move

Resources Move describes the reallocation or mobility of resources (labor, capital, etc.) from one sector, location, or use to another.