Gabriella Recently Accepted a Job with a Large Insurance Company

question 13

Multiple Choice

Gabriella recently accepted a job with a large insurance company as an internal auditor. She found that her job was quite different from the internship she had done. Her company had strictly defined job responsibilities and lines of communication. For every decision she needed to make, approval had to be obtained from upper management. Overall, she found the atmosphere to be quite formal. Gabriella's organization has a(n) :

• A) wide span of control.
• B) high degree of centralization.
• C) decentralized authority.
• D) matrix design.
• E) ineffective staff.

---

Definitions:

Behavioral Economist

An expert who studies the effects of psychological, cognitive, emotional, cultural, and social factors on economic decisions by individuals and institutions.

Sugary Treats

Foods high in sugar content, often lacking in nutritional value, and considered to be indulgent or non-essential for a healthy diet.

Long-Term Costs

The total expenses incurred by a business in producing goods or services over an extended period, including both fixed and variable costs.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, even though it was not predictable.