The Skandusky Downtown Development Corporation (SDDC), a nonprofit entity, was accused by local taxpayers of being overstaffed and too lavishly accommodated for its purpose of achieving its community development goals. This accusation is an argument that the SDDC
A) is managed by stakeholders
B) staff is following the MC = MR rule
C) is an example of the Lester-Machlup controversy
D) is engaged in empire building
E) is minimizing community losses

Question

Quizplus · Accepted Answer

The accusation that the Skandusky Downtown Development Corporation (SDDC) is overstaffed and too lavishly accommodated suggests that it is engaged in empire building, which refers to the practice of expanding an organization's size and scope beyond what might be considered necessary or efficient, often to increase the power and prestige of its management.

The Skandusky Downtown Development Corporation (SDDC), a Nonprofit Entity, Was