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As firm size Blank______, managerial salaries tend to Blank______.Multiple choice question.decrease; increaseincreases; decreaseincreases; increase

Question

As firm size Blank______, managerial salaries tend to Blank______.

Multiple choice question.

  • decrease; increase
  • increases; decrease
  • increases; increase
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Solution

To answer this multiple-choice question concerning the relationship between firm size and managerial salaries, we need to analyze the common trends observed in organizational behavior.

  1. Understanding the Concepts: Typically, as a firm grows in size, the complexity of operations increases, leading to a greater need for skilled management. This often results in higher managerial salaries to attract and retain qualified leaders.

  2. Analyzing the Options:

    • Decrease; Increase: This option seems contradictory; as size decreases, salaries may not necessarily increase.
    • Increases; Decrease: This option also does not logically follow as larger firms often offer higher salaries.
    • Increases; Increase: This aligns with the standard understanding that as firm size increases, managerial salaries also increase.
  3. Conclusion: Given the analysis, the correct option is that as firm size "increases," managerial salaries tend to "increase."

Final Answer

The correct choice is increases; increase.

This problem has been solved

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