Which of the Following Occurs When a Manager Deliberately Underestimates

question 77

Multiple Choice

Which of the following occurs when a manager deliberately underestimates revenues or overestimates costs?

• A)budgetary slack
• B)pseudoparticipation
• C)goal congruence
• D)setting standards too high

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Definitions:

Prospect Theory

A behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.

Matching Contribution

A contribution to a retirement plan, for instance, where an employer matches the employee's contribution up to a certain percentage.

Financial Well-Being

A state of being wherein an individual or family has control over their finances, can absorb a financial shock, is on track to meet financial goals, and has financial freedom to make choices that allow them to enjoy life.

Prospect Theory

Prospect Theory is a behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are unknown.