Which of the Following Is True When the Managers Have

question 19

Multiple Choice

Which of the following is true when the managers have flexibility in investment decisions?

• A)Uncertainty in management effectiveness increases as the level of flexibility in investment decisions increases.
• B)When there is very little uncertainty,the outside shareholders must not limit the managers' flexibility.
• C)The costs of discretion are greater when the interests of managers and shareholders do not coincide.
• D)Flexible investment designs cannot add value to a firm,since flexibility decreases a firm's operating options.

---

Definitions:

Group Norms

The shared expectations and rules that guide the behavior of individuals within a group, influencing conformity and social interactions.

Collaborative Goals

Objectives designed to be achieved through teamwork and cooperation among individuals or groups.

Attractive Outcomes

Desirable results or benefits that motivate individuals or groups towards a particular course of action.

Team Reflexivity

is a process where team members collectively reflect on the team's objectives, strategies, processes, and outcomes to improve performance.