Flat organizations tend to
A) contract in.
B) contract out.
C) contract vertically.
D) contract horizontally.
QUESTION 2The additional revenue a firm obtains from hiring one more unit of input is called the marginal revenue product.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3A sole proprietorship is characterized by:
a. separation of ownership and management.
b. mutual agency.
c. existence of multiple contracts.
d. unlimited liability.
QUESTION 4Independent firms that together can exploit economies of scale are referred to as a
A) T-form of organization.
B) M-form of organization.
C) network.
D) weak alliance (the matrix).
QUESTION 5The demand for labor is derived from the demand for final goods which that labor is used to produce.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6A _____ generally has less understanding of the firm than a manager and has little knowledge that is likely to improve the quality of the manager's choices.
a. specialized residual claimant
b. diversified residual claimant
c. diversified hierarchy
d. specialized hierarchy
QUESTION 7Over time, the hierarchy of firms has tended to move from
A) upstream to downstream.
B) hierarchical to non-hierarchical.
C) lateral to parallel.
D) big to small to big again.
Quick Reply
