1. Competitive markets usually promote the efcient use of resources. ibis is because: A. resource owners bear the wealth effects of their decisions. B. managers always have the proper incentives to make decisions. [3. consumers usually provide the lists of corporate mistakes. D. markets usually make equitable choices rst. 2. Jobs have at least two important dimensions: A. tasks and uncertainty. E. tasks and decision authority. [3. uncertainty and decision control. D. decision authority and decision control. 3. Fred Powellj CED of TruLite, is in a quandary. He wants to bring out a new lamp based on fuel technology to the market. He just does not understand the technology involved But he has several engineers that have spent a lot of time investigating the issue. Powell needs to: A. decentraiise decision making to people with specific knowledge. E. hire outside experts to question his engineers about fuel cells. C. just make a decision so he can beat the competition to the market. D. retire and replace himself with an engineer. 4. Which of the following is not a cost of decentralization of corporate derisionmaking? A. incentive problems E. Coordination costs and failures C. Less effective use of central information D. More effective use of local knowledge 5. Due important lesson to keep in mind during benchmarking is: A. henchrnarked rms should be made aware of the said rm's motivation. E. differences in environments of the benchmarked firms should be taken into account. [3. differences in environments of the benchmarking rm should be taken into account. D. differences in environments of the benchmarked rms are not important