Managerial Entrenchment Means That Managers ________ and Run the Firm

question 46

Multiple Choice

Managerial entrenchment means that managers ________ and run the firm for their own best interests.

• A)may face little threat of being fired
• B)are overseen by equity holders
• C)are overseen by debt holders
• D)are well compensated
• E)wish to leave the firm

Recognize the challenges and benefits of decentralization, including potential suboptimal decisions and duplication of services.

Identify the factors influencing the establishment of transfer prices and their impact on organizational goal congruence.

Understand the concept of opportunity cost and its significance in managerial decision making.

Understand the importance and components of responsibility accounting in decentralized organizations.

---

Definitions:

Comprehensive Plan

A detailed document that describes the long-term planning goals and objectives of a community, including land use, housing, transportation, and community resources.