As a firm grows bigger, it becomes: more effective in monitoring and motivating

Question

As a firm grows bigger, it becomes:

more effective in monitoring and motivating employees.

increasingly easy for individual scientists to appropriate the returns of their efforts.

less vulnerable to bureaucratic inertia.

less efficient in R&D due to loss of managerial control.

more effective in monitoring and motivating employees.

increasingly easy for individual scientists to appropriate the returns of their efforts.

less vulnerable to bureaucratic inertia.

less efficient in R&D due to loss of managerial control.

Explanation / Answer

Ans:

less efficient in R&D due to loss of managerial control.

As the firm grows bigger, the firm is managed by structuring in to divisions and departments.This results in loss of managerial control and becomes less efficient in R&D.

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