Which of the Following Statements About Resource Allocation Is Correct

question 102

Multiple Choice

Which of the following statements about resource allocation is correct?

• A)Within a firm, resources are allocated by prices; in the market, resources are allocated by the decisions of managers.
• B)Resources are allocated by prices both in the market and within the firm.
• C)Within a firm, resources are allocated by the decisions of managers; in the market, resources are allocated by prices.
• D)Resources are allocated by the decisions of managers both within the firm and in the market.
• E)In the market, resources are allocated either by prices or by the decisions of managers.

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Definitions:

Telephone Effectiveness

The measure of how well telephone communication achieves desired outcomes.

Company Grapevine

Refers to the informal transmission of information, rumors, and gossip within an organization.

Face-to-face

Direct interaction between two or more individuals, physically present in the same location.

Shadow Organization

Informal networks and unseen structures within a company that influence decisions and actions beyond the formal organizational chart.