Airline CEOs, Often Look for Patterns of Movement Within the Airline

question 11

Multiple Choice

Airline CEOs, often look for patterns of movement within the airline industry, focusing on the qualities of rhythm, flow, direction, shape and networks of relationships. This type of activity, referred to as_____ thinking, allows a CEO to see the structures that underlie complex situations within the industry and company.

• A) systems
• B) qualitative
• C) quantitative
• D) conceptual
• E) contingency

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Definitions:

Betas

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole; it indicates how much the asset's price is expected to move relative to market movements.

Hurdle Rate

The minimum acceptable rate of return on an investment that a manager or company seeks before pursuing a project or investment.

Capital-Budgeting

The process a business undertakes to evaluate potential major projects or investments, analyzing the prospective inflows and outflows to determine whether they meet a sufficient return on investment.