A Professor, Dissatisfied with a Product He's Purchased, Bad Mouths

question 26

Multiple Choice

A professor, dissatisfied with a product he's purchased, bad mouths the product to his class, resulting in decreased market share (since the students believe everything he tells them) . The manufacturer suffers:

• A) an internal failure cost.
• B) an external failure cost.
• C) a prevention cost.
• D) an appraisal cost.

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Definitions:

Empowered People

Individuals who are given the autonomy, resources, and ability to make decisions that affect their work or personal life.

Divisional Organizations

Companies structured into semi-autonomous units called divisions, each with its own resources and objectives, aligned under the larger organizational umbrella.

Functional Organizations

A type of organizational structure where the company is divided into smaller groups based on specialized functional areas such as marketing, finance, and engineering.

Network Structure

An organizational design focused on connecting various entities (e.g., departments, organizations) through informal networks rather than hierarchical lines of authority.