One of the Most Important Assumptions About How Managers Will

question 34

Multiple Choice

One of the most important assumptions about how managers will act in a budget-controlled environment is that:

• A)managers will largely ignore budgets.
• B)budgets must be too tight to encourage high aspirations.
• C)budget slack will exist in almost every budget and is negotiated by all managers.
• D)measurement affects behavior.

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Definitions:

Consumer Surplus

The difference in the total amount that customers are ready and financially able to invest in a good or service and the amount they truly pay.

Producer Surpluses

The difference between what producers are willing to sell their goods for and the actual price they receive.

Creative Destruction

A concept in economics implying the dismantling of long-standing practices in order to make way for innovation and advancement.

Government Regulation

Government Regulation involves the imposition of rules by government authorities to control or manage market activities, with the aim of protecting public interest.