Organizational Architecture

Question 1

A way of subjective, systematic conversation that expresses choices made and acceptable substitutions for choices

Answer 1

Utility or utility function

Question 2

Three parallel concepts that are critical in the design and implementation of management control systems are:

Answer 2

1. Dynamic equilibrium
2. anticipation of consequences
3. loss of energy

Question 3

__________ recognized principals and agents do not have the same utility functions

Answer 3

Agency cost

Question 4

Agent’s pursuit of their self interest instead of the principals?

Answer 4

Agency problem