Question 1
Which of the following will tend to lead to more organisational slack?
◦ Managers become more confident.
◦ A less complex organisational structure in the firm
◦ The firm does not achieve some of its targets.
◦ Less uncertainty about future demand
Question 2
When economists say that firms have multiple targets, they mean that firms
◦ allow a satisficing approach to decision making.
◦ create conglomerate mergers.
◦ maximise sales revenue.
◦ maximise profits.