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Latest Alternative Theories Of The Firm Mcqs ( Economics ) Mcqs
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When firm build in Organizational slack they do this in order to ?
A. maximize growth.
B. cope with unforeseen changes
C. minimize conflict within the firm
D. both options one and three
Which of the following is NOT a common reason for a merger?
A. To increase competition
B. To achieve faster growth
C. To reduce uncertainty
D. To achieve economies of scale
Identify below those who are not stakeholders in a company ?
D. None of the above
The merger of two clothing firms would be a ____ merger?
The merger of fiber producer and a clothing firm would be _____ merger?
Sales maximization is likely to take place in markets that are ?
A. perfectly competitive
If firms satisfice this means that ?
A. managers need to be paid enough to stop them leaving the company
B. objectives such as profit are not maximized
C. long-run profits are maximized
D. short-run profits are maximized
Firms that engage in satisficing behavior are likely to be ?
A. Like other firms in their industry.
B. leading firms in their industry
C. growth maximisers.
D. unlike other firms in their industry
Galbraith’s idea that firms are controlled by a technostructure supports _________ theories?
C. classical economic
Behavioral theories of the firm concentrate on the _______ interests of _______?
A. common; mangers
B. common; different parts of the firm
C. conflicting; managers
D. conflicting; different parts of the firm
Fear to take-overs will lead firms to maximize ?
A. sales revenue
C. managers utility
The merger of a clothing firm and a software producer would be a _______ merger?
Growth maximization is the same as ?
A. Sales maximization
B. maximization the growth of sales revenue.
C. sales revenue maximization
D. long-run profit maximization.
A sale maximizing firm will produce where ?
A. MC = MR
B. AR minus AC is maximized
C. quantity sold is maximized
D. sales revenue is maximized
The divorce of owner ship and control causes a problem usually referred to by economists as ?
A. merger mania.
B. principal-agent problem.
C. profit myopia
D. moral hazard
Williamson suggests that managers might NOT try to achieve ?
A. job security
B. maximum profits.
C. respect of other managers.
D. a large number of subordinates
A firm may be unable to maximize profits because it ?
A. has too much information
B. does not know its MC and MR
C. has too little information
D. The first and third option
The divorce of ownership and control tends to occur in ?
B. sole proprietors
C. public limited companies
Public limited companies may not maximize their profits because ?
A. shareholders want higher dividends.
B. shareholders have little control over managers.
C. they are afraid of encouraging takeovers.
D. both the first and third option.
The traditional profit-maximizing theory of the firm has been criticized by some economists because ?
A. firms have other aims
B. firms do not know how to maximize profits.
C. it does not explain monopolistic competition
D. Both the first and second option