A Subunit's Power Is Reduced to the Extent That Others

question 42

Multiple Choice

A subunit's power is reduced to the extent that others inside or outside of the organisation can also perform its responsibilities.This reflects the subunit's

• A) referent power.
• B) uncertainty.
• C) resource scarcity.
• D) centrality.
• E) substitutability.

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Definitions:

APT Model

Arbitrage Pricing Theory Model; a financial theory that estimates the returns on assets based on their exposure to various risk factors.

One Factor

In finance, refers to models or analyses that consider only a single variable or risk factor in their calculations.

CAPM

The Capital Asset Pricing Model, a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Betas

A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.