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Question : Statement 1: Market control involves using market competition to regulate performance.

Statement 2: Market control is suitable for organizations with a hierarchical structure.

 

Option 1: Both correct.

Option 2: Both incorrect.

Option 3: Statement 1 correct, Statement 2 incorrect.

Option 4: Statement 2 incorrect, Statement 1 correct.


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: Statement 1 correct, Statement 2 incorrect.


Solution : The correct answer is (c) Statement 1 correct, Statement 2 incorrect.

Statement 1 is correct. Market control is a mechanism that involves using market forces, competition, and customer demand to regulate an organization's performance. It relies on external market dynamics to influence an organization's behavior.

Statement 2 is incorrect. Market control is not inherently tied to a specific organizational structure, such as a hierarchical one. It can be applied in various types of organizational structures, depending on the industry and competitive environment. The suitability of market control is more related to the nature of the organization's products or services and the market in which it operates.

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