Which of the Following Increases the Threat That Organization a Will

question 43

Multiple Choice

Which of the following increases the threat that organization A will behave opportunistically towards organization B?

• A) Organization A is dependent on organization B for scarce resources.
• B) The environment of organization A is richer than the environment of organization B.
• C) Organization A provides a service to organization B that only a few organizations can replicate.
• D) The environment that both organizations operate in is stable.

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Definitions:

Retained Earnings

The portion of a company's profits not distributed as dividends but reinvested in the business.

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, expressed as a percentage.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated by comparing the net income and the revenue of a company.

Pro Forma

Financial statements prepared using certain assumptions or projections, designed to present a company's expected financial position.