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
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.
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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.
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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.
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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.
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