Theme 3 AO3 Flashcards
1
Q
A business owner hires a new manager to control daily activities. What might happen?
A
Principal-agent problem > managers controls activities > profit satisficing > manager pursues business objectives against the shareholders wishes > project and growth is halted.
2
Q
A business focuses on the environmental part of PESTLE in their practices. What will happen?
A
Focus on environment > develop sustainable production > protect wildlife and ecosystems > better consumer reputation > greater future sales and revenue.
