Which of the Following Statements Is/are False

question 22

Multiple Choice

Which of the following statements is/are false?

• A) Goal congruence is difficult to achieve because managers are often unaware of the effects of their decisions on the organisation's subunits.
• B) The development of performance measures to evaluate a subunit and its managers will help achieve goal congruence.
• C) People are naturally concerned with the performance of all subunits within the organisation.
• D) Goal congruence can be achieved by having a reward system tied to a manager's performance.

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Definitions:

Firm

An organization engaged in commercial, industrial, or professional activities, either for-profit or not-for-profit.

Profit-Maximizing Level

The point at which a business achieves the highest profit, with costs minimized and revenue maximized.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Total Cost

The overall amount of money spent on production, which includes both fixed and variable expenses.