Product Management Organisations

question 10

Multiple Choice

Product management organisations:

• A)rely primarily on hierarchical mechanisms for resolving conflicts across functional areas
• B)are characterised by decentralised decision-making while increasing the amount of product specialisation within the SBU
• C)are the most specialised type of organisation
• D)are the most common organisational form among entrepreneurial start-ups,including many dot-com companies

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Definitions:

WACC

Weighted Average Cost of Capital, a calculation that reflects the average rate that a company is expected to pay its security holders to finance its assets.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, assigning weights accordingly.

Cost of Capital

The expected returns an investor requires to make an investment worthwhile, often used as a benchmark to evaluate the viability of investment projects.

Basic Assumption

A fundamental premise or underlying principle that is taken for granted in the context of a particular model, theory, or methodology.