Assume That an Organisation Has a Clear Division of Labour

question 25

Multiple Choice

Assume that an organisation has a clear division of labour, the duties and responsibilities of its employees are explicitly defined, it has standard rules and procedures, it has a hierarchy of authority, and its members are selected for technical competence. This is an example of:

• A) a closed system.
• B) an open system.
• C) negative entropy.
• D) scientific management.
• E) a bureaucracy.

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Definitions:

Exposure Hedge

A financial strategy utilized to minimize the risk associated with exposure to adverse movements in foreign exchange rates, interest rates, or commodity prices.

Debt Extinguishment

The process of discharging or settling a debt, either through repayment or through a financial restructuring agreement.

Bond Premium

The amount by which the market price of a bond exceeds its par value, typically arising when the bond's interest rate is higher than the market rate.

Forward Contract

A customized financial agreement to buy or sell an asset at a specified future date at a price agreed upon today.