Alternative Theories Of The Firm MCQs

Option A: cope with unforeseen changes

Option B: maximize growth.

Option C: minimize conflict within the firm

Option D: both options one and three

Correct Answer: both options one and three ✔

Option A: To increase competition

Option B: To reduce uncertainty

Option C: To achieve faster growth

Option D: To achieve economies of scale

Correct Answer: To increase competition ✔

Option A: Owners

Option B: Customers

Option C: Employees

Option D: None of the above

Correct Answer: None of the above ✔

Option A: horizontal

Option B: vertical

Option C: homogeneous

Option D: conglomerate

Correct Answer: horizontal ✔

Option A: horizontal

Option B: vertical

Option C: conglomerate

Option D: homogeneous

Correct Answer: vertical ✔

Option A: contestable

Option B: perfectly competitive

Option C: oligopolistic

Option D: export-oriented

Correct Answer: oligopolistic ✔

Option A: managers need to be paid enough to stop them leaving the company

Option B: objectives such as profit are not maximized

Option C: short-run profits are maximized

Option D: long-run profits are maximized

Correct Answer: objectives such as profit are not maximized ✔

Option A: Like other firms in their industry.

Option B: growth maximisers.

Option C: leading firms in their industry

Option D: unlike other firms in their industry

Correct Answer: Like other firms in their industry. ✔

Option A: Williamson’s

Option B: classical economic

Option C: Marxist

Option D: monetarist

Correct Answer: A. Williamson’s ✔

Option A: common; different parts of the firm

Option B: common; mangers

Option C: conflicting; managers

Option D: conflicting; different parts of the firm

Correct Answer: conflicting; different parts of the firm ✔

Option A: growth.

Option B: sales revenue

Option C: managers utility

Option D: profits.

Correct Answer: profits. ✔

Option A: horizontal

Option B: vertical

Option C: conglomerate

Option D: homogeneous

Correct Answer: conglomerate ✔

Option A: sales revenue maximization

Option B: maximization the growth of sales revenue.

Option C: Sales maximization

Option D: long-run profit maximization.

Correct Answer: maximization the growth of sales revenue. ✔

Option A: AR minus AC is maximized

Option B: MC = MR

Option C: quantity sold is maximized

Option D: sales revenue is maximized

Correct Answer: sales revenue is maximized ✔

Option A: profit myopia

Option B: principal-agent problem.

Option C: merger mania.

Option D: moral hazard

Correct Answer: principal-agent problem. ✔

Option A: respect of other managers.

Option B: maximum profits.

Option C: job security

Option D: a large number of subordinates

Correct Answer: maximum profits. ✔

Option A: does not know its MC and MR

Option B: has too much information

Option C: has too little information

Option D: The first and third option

Correct Answer: The first and third option ✔

Option A: sole proprietors

Option B: partnerships

Option C: public limited companies

Option D: monopolies

Correct Answer: public limited companies ✔

Option A: they are afraid of encouraging takeovers.

Option B: shareholders have little control over managers.

Option C: shareholders want higher dividends.

Option D: both the first and third option.

Correct Answer: shareholders have little control over managers. ✔

Option A: firms do not know how to maximize profits.

Option B: firms have other aims

Option C: it does not explain monopolistic competition

Option D: Both the first and second option

Correct Answer: Both the first and second option ✔