___________ Decisions Set the Course for an Organization and Are

question 117

Short Answer

___________ decisions set the course for an organization and are made by CEOs,while ______________ decisions are those that make the organization run and are made daily by employees.

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Definitions:

Risk and Return

The principle that potential return on investment rises with an increase in risk. Higher risk is associated with the greater probability of higher return and vice versa.

Moral Hazard

The tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior.

Diversification

An investment strategy that minimizes risk by allocating assets among various financial instruments, industries, or other categories.

Market Risk

Risk that affects all companies in the stock market.