Why do companies create organizational slack within their structure?

Multiple choice question for Alternative Theories Of The Firm. Select an option, then review the explanation below.

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To handle unexpected disruptionsTo enhance expansion opportunitiesTo reduce internal disagreementsTo both manage unforeseen changes and decrease internal conflicts

Explanation

Organizational slack is developed by firms to both manage unexpected changes and reduce internal conflicts, combining the purposes described in options A and C.

Practice related questions from the same subject.

1.Which of the following is NOT typically a motive behind a company merger?
2.Which of the following groups are not considered stakeholders in a business?
3.What type of merger occurs when two companies in the same clothing industry combine?
4.What type of merger occurs when a fiber manufacturing company combines with a clothing manufacturer?
5.In which type of market is sales maximization most commonly observed?

Why do companies create organizational slack within their structure?

Explanation

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