Alternative Theories Of The Firm(Economics ) Questions and Answers

Question 1. Identify below those who are not stakeholders in a company ?
  1.    Owners
  2.    Customers
  3.    Employees
  4.    None of the above
Explanation:-
Answer: Option D. -> None of the above
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 2. Which of the following is NOT a common reason for a merger?
  1.    To increase competition
  2.    To reduce uncertainty
  3.    To achieve faster growth
  4.    To achieve economies of scale
Explanation:-
Answer: Option A. -> To increase competition
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 3. When firm build in Organizational slack they do this in order to ?
  1.    cope with unforeseen changes
  2.    maximize growth.
  3.    minimize conflict within the firm
  4.    both options one and three
Explanation:-
Answer: Option D. -> both options one and three
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 4. The merger of fiber producer and a clothing firm would be _____ merger?
  1.    horizontal
  2.    vertical
  3.    conglomerate
  4.    homogeneous
Explanation:-
Answer: Option B. -> vertical
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 5. Sales maximization is likely to take place in markets that are ?
  1.    contestable
  2.    perfectly competitive
  3.    oligopolistic
  4.    export-oriented
Explanation:-
Answer: Option C. -> oligopolistic
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 6. If firms satisfice this means that ?
  1.    managers need to be paid enough to stop them leaving the company
  2.    objectives such as profit are not maximized
  3.    short-run profits are maximized
  4.    long-run profits are maximized
Explanation:-
Answer: Option B. -> objectives such as profit are not maximized
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 7. The merger of two clothing firms would be a ____ merger?
  1.    horizontal
  2.    vertical
  3.    homogeneous
  4.    conglomerate
Explanation:-
Answer: Option A. -> horizontal
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 8. Behavioral theories of the firm concentrate on the _______ interests of _______?
  1.    common; different parts of the firm
  2.    common; mangers
  3.    conflicting; managers
  4.    conflicting; different parts of the firm
Explanation:-
Answer: Option D. -> conflicting; different parts of the firm
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 9. Galbraith’s idea that firms are controlled by a technostructure supports _________ theories?
  1.    Williamson’s
  2.    classical economic
  3.    Marxist
  4.    monetarist
Explanation:-
Answer: Option A. -> Williamson’s
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 10. Firms that engage in satisficing behavior are likely to be ?
  1.    Like other firms in their industry.
  2.    growth maximisers.
  3.    leading firms in their industry
  4.    unlike other firms in their industry
Explanation:-
Answer: Option A. -> Like other firms in their industry.
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
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