Corporate power comes from the people who voluntarily agree to comply with a leader's proposal. Formal authority and control over a company's budgets and resources are some sources of corporate power. Corporate power also comes from the people who voluntarily agree to comply with a leader's proposal. Which one is most important for the successful functioning of today's corporate management?
What will be an ideal response?
Given well-functioning labor markets, managers can voluntarily leave companies where power is used to push through unsupported proposals. All else equal, it may be more productive to gain voluntary support for proposals. That being said, it is important to create an architecture where decision makers initiate proposals that improve firm value. For this reason, it may be a good move to grant resource control to managers with the most potential to increase firm value.
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Which of the following is a "free" good?
A) Elderly health care, which is covered by Medicare B) Health care for the poor, which is covered by Medicaid C) Higher education in Georgia, which is paid for by lottery revenue D) All of the above. E) None of the above.
The reduction in average cost resulting from an increase in the volume of a good or services produced is called:
A) information cost B) transaction cost C) diminishing returns D) economies of scale
The negotiation process between an employer and a union is described as collective bargaining
Indicate whether the statement is true or false
When the government sets a price floor which is below the equilibrium price
A. the equilibrium price will be maintained. B. a surplus will develop. C. a price ceiling will follow. D. a shortage will develop.