Which Theory States That an Organization Functions Like a Machine

question 29

Multiple Choice

Which theory states that an organization functions like a machine?

• A) Classical theory
• B) Humanistic theory
• C) Human relations theory
• D) Theory X/Y

Analyze the impact of corporate tax rate changes on a firm's depreciation tax shield.

Apply the bottom-up approach to computing operating cash flows in various project scenarios.

Understand the role and treatment of net working capital (NWC) in project valuation.

Evaluate the effects of cost structures on pro forma statements for cost-cutting projects.

---

Definitions:

Conventional Finance Theory

A framework in economics that explains the behavior of financial markets, including the dynamics of assets and securities pricing, investment portfolios, and market mechanisms.

Behavioral Finance

An area of study focusing on how psychological influences and biases affect the financial behaviors of investors and financial markets.

Rational

Characterized by clear, logical thinking, often referring to decision-making that maximizes benefit.

Irrational

Acting without reason or understanding, often defying logical or expected behavior, particularly in economic contexts referring to market participants.