William Ouchi Believed That a Pure Type J Approach to Management

question 66

Multiple Choice

William Ouchi believed that a pure Type J approach to management would not work in the United States because it

• A) failed to encourage open communication.
• B) could lead to violations of U.S. antitrust laws.
• C) is based on the values and attitudes of Japanese culture.
• D) is too dependent on the assumptions of scientific management.

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Definitions:

Capital Structure

The composition of a company’s debt and equity used to finance its overall operations and growth.

Market Risk Premium

The additional return an investor requires from a market portfolio over the risk-free rate, compensating for the risk of the investment.

Financial Leverage

The use of borrowed funds to increase the potential return on an investment.

Shareholder Leverage

The use of borrowed funds by shareholders to increase their potential returns from an investment.