Suppose a Firm Has Decided to Break Its Departments Down

question 122

Multiple Choice

Suppose a firm has decided to break its departments down into smaller units. While this likely will help with __________ issues, it raises the possibility that poor decisions will result due to __________.

• A)risk aversion; suboptimization
• B)economies of scale; risk aversion
• C)span of control; suboptimization
• D)span of control; risk aversion
• E)economies of scale; limited span of control

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Definitions:

Currency

A system of money in common use, especially in a nation, defined by notes and coins that constitute the physical embodiments of a country's economic exchange medium.

European Sovereign Debt Crisis

A period of financial turmoil in the eurozone where several member countries faced rising government debts and bond yields, leading to bailouts and austerity measures.

Traditional Bond Markets

Financial markets where investors trade debt securities, typically issued by governments and corporations with fixed interest rates.

Bailouts

Bailouts refer to financial support provided to a company or country facing financial distress, often to prevent bankruptcy and stabilize the economy, usually by governmental or international organizations.