Annual budgeting of production goals of a division within a firm
a. is an accounting mechanism to plan for the costs and revenues over a time period
b. increase the burden on the division when goals rise
c. can lead to accumulated inventory when goals rise
d. all of the above
QUESTION 2Consolidation activity in the hospital industry
a. has slowed due to government regulations.
b. has created a large number of nationwide for-profit hospital chains.
c. has occurred almost exclusively at the local level.
d. occurs for same reasons that cause consolidation in other industries.
QUESTION 3Assume X and Y are the only two goods a person consumes. If after a rise in the quantity demanded of Y increases, one could say
a. the income effect dominates the substitution effect for Y.
b. the substitution effect dominates the income effect for Y.
c. it is impossible to determine whether the substitution or income effect dominates for Y.
d. None of the above.
QUESTION 4The features of the M-Form of firm organization are
a. divisions have difficulty responding to market changes
b. it is difficult to maintain customer relationships
c. coordination across divisions is simple and does not take much management time
d. employee evaluation is hampered by managers often having different skill sets than those the manage
QUESTION 5Horizontal integration allows firms to do all of the following except
a. take advantage of cost savings due to economies of scale.
b. reduce administrative costs.
c. create brand identity.
d. fully integrate with primary care clinics and acute care nursing facilities.
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