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The Systems Concept of ____________________ Can Be Used to Explain

question 16

Short Answer

The systems concept of ____________________ can be used to explain why organizations engage in reengineering.


Definitions:

Managerial Economics

An academic discipline that applies microeconomic theory and quantitative methods to solve business decision problems.

Agency Costs

are expenditures or losses incurred from the conflict of interest between principals (owners/shareholders) and agents (managers).

Imperfections

Flaws, faults, or defects that prevent something from being perfect or completely correct.

Agency Costs

Expenses that arise from conflicts of interest between principals (such as shareholders) and agents (such as managers) within a corporation.

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