1. The issue of centralization versus of decentralization focuses on

• profit centers within the corporation.
• Which level of hierarchy to place a decision right
• Which level of hierarchy to determine job bundling
• Which level of hierarchy to determine task assignment.

1. Factors that favor high incentive pay include

• employee output is sensitive to effort
• employees are very risk averse
• random risk occurrences are very large.
• All the above.

1. Specialized task assignment greatest cost is ignoring the foregone ______________across tasks.

• comparative advantage
• flexibility
• complementarities
• lower cross training expenses

1. Which of the following is not a condition for teams to succeed?

• must be synergistic potential
• must be able to prevent free riding at low cost.
• must be able to inform all team members equally.
• must have a lot of diversity among the team members.
• all the above.

1. A firm is a in a position to pay a worker less than he/she is worth if:

• It has the ability to pay a wage less than a worker's marginal revenue product.
• It has the ability to pay a wage greater than a worker's marginal revenue product.
• There are many buyers for the worker's services.
• All of the above
• None of the above