The Larger the Top Management Team

question 14

Multiple Choice

The larger the top management team:

• A) the more difficult it is for the team to implement strategies.
• B) the more likely it is that the team will be homogeneous.
• C) the less innovative the team's decisions are.
• D) the higher quality the team's decisions are.

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Definitions:

Rate of GDP Growth

The annual percentage increase in a country's gross domestic product, indicating the pace at which its economy is expanding or contracting.

Unsystematic Risk

The risk associated with a specific issuer of a security, such as a company's financial condition or management decisions, distinct from market risk.

Unemployment Figures

Unemployment figures represent the statistic that measures the number of people who are actively looking for employment but unable to find work, often expressed as a percentage of the labor force.

Unsystematic Risk

The risk associated with a specific company or industry, also known as non-systematic risk or diversifiable risk.