Which of the following is most likely to increase transaction costs?
A) having many possible trading partners
B) investing in specific assets
C) operating in a stable environment
D) adopting a decentralized organizational structure
Question 2The purpose of rites of passage is to ________.
A) encourage members to learn and internalize the organization's norms and values
B) motivate organizational members to be committed to the company's norms and values
C) build common bonds between organizational members
D) allow an organization to change its norms and values
Question 3The costs of negotiating, monitoring, and governing exchanges between people are known as the ________ costs.
A) transaction
B) historical
C) sunk
D) opportunity
Question 4Which of the following organizational learning strategies, proposed by James March, involves organizational members searching for and experimenting with new kinds or forms of organizational activities and procedures to increase effectiveness?
A) exploration
B) exploitation
C) reciprocation
D) association
Question 5Strategic changes are largely concerned with adjustments in _____.
a. behavior of key individuals
b. the profit and loss statement
c. incentive and reward system
d. structure, systems, and people
e. a weak culture
Question 6Which of the following methods of managing competitive interdependencies is most likely to be used by an organization to monopolize an industry and become the sole player in the industry?
A) enter into a cartel
B) enter into a joint venture
C) enter into a merger
D) enter into a long-term contract
Question 7Which of the following is an example of organizational learning that involves exploration?
A) a supplier implements a TQM program
B) a steel mill refines its production processes
C) an automobile manufacturer enters into a strategic alliance
D) a software services company modifies its existing leave policy
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