While Observing the Departments in His Division, Matthew Notices That

question 50

Multiple Choice

While observing the departments in his division, Matthew notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly sized spans of control. Which of the following statements is most likely to be true regarding the high-performing managers?

• A) These managers are paid higher salaries than the low-performing managers.
• B) These managers have an eternal locus of control.
• C) The employees within their departments tend to compete to reach productivity goals, which boosts performance.
• D) The employees within their departments score high on agreeableness.
• E) The employees within their departments are highly skilled and very knowledgeable about their jobs.

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Definitions:

Interest Rate Parity

A theory in financial economics that suggests the difference between the interest rates of two countries is equal to the difference between the forward exchange rate and the spot exchange rate.

Forward Rate

The agreed-upon price for a financial transaction that will occur at a future date, used primarily in foreign exchange and interest rate markets.

Spot Rate

The present market rate at which a specific asset, like a currency, commodity, or security, is available for purchase or sale with immediate delivery.

Relative Purchasing Power Parity

A theory stating that changes in exchange rates between currencies are influenced by changes in the countries' price levels, maintaining the purchasing power of each currency.