Which Linkage Mechanism Is the Most Informal

question 10

Multiple Choice

Which linkage mechanism is the most informal?

• A)Interlocking directorate
• B)Reputation
• C)Contracts
• D)Strategic alliance

Assess the relationship between risk-free rate, market rate of return, and expected security returns.

Analyze the relevance of the market portfolio, including its properties and composition.

Differentiate between the Capital Market Line (CML) and the Security Market Line (SML).

Understand the basics and the necessity of consolidation adjustments in intra-group transactions.

---

Definitions:

Net Operating Income

The total profit of a company after operating expenses are subtracted but before deducting interest and taxes.

Planning Budget

A budget prepared for a specific level of activity; it outlines the expected revenues, expenses, and resource requirements for that activity level.

Tenant-Days

A metric used in property management to represent the total number of days in a period that rental units were occupied.

Net Operating Income

The income generated from normal business operations, calculated by deducting operating expenses from gross profit.