Which of the Following Companies Will Most Likely Have a Mechanistic

question 47

Multiple Choice

Which of the following companies will most likely have a mechanistic structure?

• A) a pharmaceutical company that has a core competence in R&D
• B) a soft-drink company that has a core competence in marketing
• C) a medical equipment manufacturer that has a core competence in manufacturing
• D) a telecommunications company that operates in a dynamic environment

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Definitions:

CAL

Stands for Capital Allocation Line, which represents the risk-reward profile of various portfolios, showing the possible rates of return for a given level of risk.

1-month T-bills

Short-term U.S. government debt obligations with a maturity of one month, often used as an investment with minimal risk.

Compound Return

The increase in value of an investment due to the earnings on both the principal and the accumulated earnings over previous periods.

Portfolio

A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual, exchange-traded, and closed funds.