Which of the Following Types of Organisations Are Becoming More

question 30

Multiple Choice

Which of the following types of organisations are becoming more flexible in an attempt to better deal with high amounts of environmental uncertainty?

• A) Telecommunications and airline companies
• B) Companies that were previously state-owned but now are privatised, and are forced to compete under open market conditions
• C) Businesses within those industries, which have been deregulated and must meet new competitive pressures
• D) All of the options listed
• E) None of the options listed

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Definitions:

Market Risk Premium

The surplus earnings expected by investors for possessing a market portfolio with risks as opposed to secure, riskless assets.

CAPM

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

Marginal Cost

The cost incurred by producing one additional unit of a product or service, critical for pricing and production decisions.

Retained Earnings

Retained earnings represent the cumulative amount of net income that a company has reinvested in its business rather than distributed to shareholders as dividends.