Eisenhardt Suggests That Managers in a Fast- Moving Environment Should

question 29

Multiple Choice

Eisenhardt suggests that managers in a fast- moving environment should aim for consensus but not at any cost. What two points result from that guideline?

• A) The CEO should always base a decision on the majority view, not their own opinion.
• B) Managers who disagree with a decisions would work constructively to change it in future.
• C) Other managers should accept the decision and get on with implementation.
• D) The CEO should have the courage to make a decision at some point.

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Definitions:

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Ordinary Annuity

A series of equal payments made at regular intervals, such as monthly or annually, over a specified period.

Annuity Due

An annuity payment arrangement where payments are made at the beginning of each period, as opposed to the end, which is the case with an ordinary annuity.

Return Requirement

A specified rate of return that investors expect to receive from an investment.