The Informal Organization of a Business Is Probably Best Suited

question 141

Multiple Choice

The informal organization of a business is probably best suited to

• A) give workers a clear idea of where they stand in the organization.
• B) provide helpful guidelines about how to handle routine problems.
• C) provide a mechanism that generates careful reasoned decisions about critical issues.
• D) create a feeling of camaraderie among employees and encourage teamwork.

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Definitions:

CAPM

The Capital Asset Pricing Model; a formula that calculates expected return on investment based on its risk relative to the market.

Risk-Free Rate

The projected gain from an investment without any risk, commonly exemplified by the returns on government bonds.

Market Proxy

A benchmark or index that represents the overall movement of the market, used for comparative analysis of an investment's performance.

CAPM

Capital Asset Pricing Model, a formula that describes the relationship between the expected return of an investment and its risk.