Baggins Incorporated Identifies New Product Development and Product Improvement as the Top

question 33

Multiple Choice

Baggins Incorporated identifies new product development and product improvement as the top corporate goals.An employee developed an innovation that will correct a shortcoming in one of the company's products.Although Baggins current Return on Investment (ROI) is 15%,the product innovation is expected to generate ROI of only 12%.As a result,the employee fails to follow up.As a result,awarding bonuses to employees based on ROI resulted in

• A) goal conflict.
• B) information overload.
• C) goal congruence.
• D) decreased value of information.

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Definitions:

Corporate Form

A legal structure for businesses that is recognized as a separate legal entity from its owners, providing liability protection and other benefits.

Duties

Responsibilities or obligations required by one's role, job, or by law.

Incorporation

The process of legally declaring a business as a corporation, allowing it to operate as a separate legal entity from its owners.

Sole Proprietorship

An individual carrying on business alone.