__________ Is the Tendency for Actors in a Network to Form

question 19

Multiple Choice

__________ is the tendency for actors in a network to form connections with and share the opinions and behaviors of others who are similar in terms of demographics (e.g., gender, ethnicity, educational attainment) or other attributes (e.g., personality, values) .

• A) Homophily
• B) Hedonism
• C) Centralization
• D) Network centrality
• E) Psychological safety

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Definitions:

Financial Risks

The possibility of losing money on an investment or business operation due to market fluctuations, default, or other financial uncertainties.

Homemade Leverage

The use of personal borrowing to change the overall amount of financial leverage to which an individual or household is exposed.

Financial Leverage

The use of borrowed funds (debt) to amplify potential returns on investment, which could also increase the potential for loss.

Indirect Bankruptcy Cost

Expenses that a company incurs when it approaches bankruptcy that do not include actual legal and other direct costs, such as lost sales, damage to reputation, and management distraction.