All of the Following Are Reasons to Be Completely Open

question 86

Multiple Choice

All of the following are reasons to be completely open as opposed to secretive with the strategy process EXCEPT

• A) managers, employees, and other stakeholders can readily contribute to the process.
• B) stakeholders have greater basis for understanding and committing to a firm that is open.
• C) visibility promotes democracy, whereas secrecy promotes autocracy.
• D) participation and openness enhance understanding, commitment, and communication within the firm.
• E) openness limits rival firms from imitating or duplicating the firm's strategies.

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Definitions:

Risk-Adjusted Performance

A measure of how much risk is taken to achieve a certain level of return, comparing the performance of investments across different risk levels.

Mutual Funds

Investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Treynor Measure

A performance metric for determining how much excess return was generated for each unit of risk taken by a portfolio.

Beta

A measure of a stock's volatility in relation to the overall market; indicates the stock's risk compared to that of the average market portfolio.