Organizational Structure Identifies the Grouping of Individuals Into

question 7

Multiple Choice

Organizational structure identifies the grouping of individuals into:

• A)organizations.
• B)companies.
• C)silos.
• D)departments.

Comprehend the distinction between stocks and bonds and the inverse relationship between stock prices and interest rates.

Recognize the role and characteristics of primary and secondary markets in securities trading.

Differentiate among various risk types, including default risk, liquidity risk, and market risk.

Understand the concept of real versus nominal interest rates and the components of interest rates.

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Definitions:

Diffusion Of Responsibility

The ability of group members to share the burden of the negative consequences of a poor decision.

Risky Shifts

Risky shift phenomenon observes that groups tend to make decisions that are riskier than the individual decisions of group members due to the diffusion of responsibility and group influence.

Unambiguous Decisions

Decisions that are clear and definite, leaving no doubt or room for multiple interpretations.

Reinforcement

A consequence that follows an action and increases the likelihood of that action being repeated in the future.