Departmentalization Refers to

question 63

Multiple Choice

Departmentalization refers to

• A) setting up divisions in an organization.
• B) categorizing employees based on their qualifications.
• C) creating a hierarchy of different levels in an organization.
• D) standardizing procedures for all departments.

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Definitions:

Passive Strategy

A portfolio decision that avoids any direct or indirect security analysis. See passive management.

Index Funds

Investment funds designed to replicate and track the components of a market index.

Sharpe Measure

A financial metric used to measure the performance of an investment compared to its risk, indicating how much excess return you are receiving for the extra volatility endured by holding a riskier asset.

Mean-Variance Analysis

Evaluation of risky prospects based on the expected value and variance of possible outcomes.