Enron was clearly a company riddled with fraud and its conduct drove it to bankruptcy. The text argues that individual behavior was not the core of Enron's problems. What were the problems with this corporation from an organizational architecture point of view?
What will be an ideal response?
Enron delegated an extraordinary amount of decision rights to lower-level employees. At the same time, Enron lacked effective oversight and review of decisions made by these employees. Second, performance was evaluated largely on near-term earnings growth and success in closing deals. Third, the company offered enormous compensation to its top performers, which encouraged excessive risk taking. The company's internal risk management group was in charge of performance evaluations, but the performance appraisals within the group were based in part on the recommendations of the individuals making the deals.
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A. more centrist politics. B. less centrist politics. C. a greater variety of policy getting passed. D. very little legislation actually getting passed.
If the natural unemployment rate is 7 percent and the current unemployment rate is 5 percent, then the economy is
A) producing a level of Real GDP that is greater than the level of natural Real GDP. B) in a recessionary gap. C) producing a level of Real GDP that is less than the level of natural Real GDP. D) a and b E) b and c
Refer to Table 8.5. Assume that fruit baskets are sold in a perfectly competitive market. The market price of a fruit basket is $22. To maximize profits, Exotic Fruit should sell __________ fruit basket(s). A) three B) four C) five D) six
Which of the following would cause a decrease in aggregate demand?
A. a rise in wages B. an increase in the price level C. an increase in the money supply D. a fall in investor confidence