When Activities Are Performed Inside Firms, Which of the Following

question 5

Multiple Choice

When activities are performed inside firms, which of the following is true?

• A)Centralized firms delegate decision rights to the lowest operational level
• B)The best performance measurement systems use only financial data because it is objective
• C)Individuals strive to manipulate the performance evaluation system to maximize their own benefits
• D)For efficiency, a manager should have both decision rights and decision control
• E)None of the above

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Definitions:

Trade Restrictions

Government-imposed limitations on the free exchange of goods and services between countries, including quotas, tariffs, and embargoes.

Semiconductor Industry

The semiconductor industry includes companies involved in the design, manufacture, and supply of semiconductors, which are essential components for electronic devices.

Jobs and Income Argument

The theory that lower taxes and decreased regulation will lead to increased employment and wages.

Declining Industries Argument

The declining industries argument posits that sectors experiencing a sustained decrease in demand or productivity require intervention or support, often invoking protectionist measures to safeguard employment and regional economies.