Rebecca is concerned about the number of customers complaining about the poor service provided by the department she manages for a hardware store. she is convinced that her employees can provide better service and cut complaints significantly. rebecca has set a goal for her department to reduce customer complaints by 15% within six months. this goal is an example of the type of performance standard needed for effective controlling.

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.