A Primary Advantage of Organizing Economic Activity Within Firms Is

question 13

Multiple Choice

A primary advantage of organizing economic activity within firms is the

• A) ability to coordinate highly complex tasks to allow for specialized division of labor.
• B) low administrative costs because of reduced bureaucracy.
• C) eradication of the principal-agent problem.
• D) high-powered incentive to work as salaried employees for an existing firm.

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Definitions:

Diverse Workforce

A workforce that includes employees of varying gender, age, religion, race, ethnicity, cultural background, sexual orientation, religion, languages, education, and abilities.

Supervisors

Individuals in a workplace who oversee and manage the work of others, ensuring tasks are completed efficiently and effectively.

Cooperation

The process of working together to the same end or engaging in joint action.

Diverse Workforce

A workforce that includes employees from a wide range of backgrounds, including different races, ethnicities, genders, ages, religions, disabilities, and sexual orientations.