The contemporary management tool that focuses on restrictions that limit a firm's ability to maximise long-run profit is commonly known as:

Question

Quizplus · Accepted Answer

The tool that focuses on restrictions that limit a firm's ability to maximise long-run profit is called the theory of constraints. This management tool involves identifying the bottleneck in a production process and finding ways to alleviate it in order to increase efficiency and ultimately improve profitability. Choices A, B, and D do not accurately describe this management tool.

The Contemporary Management Tool That Focuses on Restrictions That Limit