Reference no: EM132173859

1. As a firm grows bigger, it becomes:

more effective in monitoring and motivating employees.

increasingly easy for individual scientists to appropriate the returns of their efforts.

less vulnerable to bureaucratic inertia.

less efficient in R&D due to loss of managerial control.

2. Urban Fashions Corp. has become very successful in the last few years and now employs a large number of people. Serena, the owner of the firm, had been very informal in running the company. However, because of the increase in the size of the firm, she now feels that the informal ways of management have become ineffective. In order to structure the behavior of employees, Serena wants to introduce written codes of conduct and regulations into the firm. This change being introduced in the company by Serena is referred to as ________.

nationalization

disintermediation

formalization

decentralization

3. In the 1980s and 1990s, Neon Corp. was the most successful firm in the television market. The firm believed that its competitors would never be able to produce televisions comparable to its quality and cost. As a result, it was unable to respond to the new generations of television with which its Japanese competitors had begun to infiltrate the market. Eventually, Neon lost its market leadership to its competitors. This scenario most clearly exemplifies the ________.

Icarus Paradox

Hawthorne effect

Idiosyncrasy Credit

Giffen effect