Organizational Inertia Refers to the Tendency of an Organization to ________

question 54

Multiple Choice

Organizational inertia refers to the tendency of an organization to ________.

• A) increasing the number of products produced so as to take advantage of economies of scope
• B) increase the diversity of its workforce
• C) decrease cost of production by using economies of scale
• D) resist change and maintain the status quo

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Definitions:

Stock Splits

An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares.

Cash Flow Statement

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations, and all cash outflows that pay for business activities and investments during a given period.

IFRS

International Financial Reporting Standards, which are a set of accounting rules followed by companies across the globe for maintaining their financial statements.