Why do companies create organizational slack within their structure?

Alternative Theories Of The Firm MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Alternative Theories Of The Firmeconomics-mcqs › alternative-theories-of-the-firm
Published
3 Jun 2019
Last updated
28 May 2026

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Explanation

Organizational slack is developed by firms to both manage unexpected changes and reduce internal conflicts, combining the purposes described in options A and C.

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