To motivate the employees of a company to change and follow a new mission, it is important to:
A. move overseas for most of the production.
B. change the company's organizational architecture.
C. rely on standard U-form organizational structures.
D. outsource marketing and advertising.
Answer: B
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Why do most large firms incorporate rather than operate as sole proprietorships or partnerships?
When the market fails to promote the efficient use of resources by producing either more or less than the optimal output level, government involvement can improve outcomes when _____.
a. the market equilibrium does not result in the equal distribution of the output b. there are externalities in production and/or consumption that are not captured by the parties involved in the transaction c. firms have undue market power d. there are barriers to entry that limit competition e. asymmetric information characterizes the transaction
Trade theory suggests that increased trade leads to increased wage equality.
Answer the following statement true (T) or false (F)
In the Social Security system, the tax receipts from today's workers are
A. paid into the federal government's general revenue to be used for any government expenditure. B. paid into an account in the employee's name and saved and invested for that individual until he or she retires. C. all paid into Medicare. D. used to pay benefits to retired and disabled workers and their dependents today.