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As the level of formalization increases in an organization, the probability of _____ also increases.
Debt
A sum of money lent by one individual to another, with the agreement that it will be returned at a future time, typically with additional interest.
Sinking Fund
Account managed by the bond trustee for early bond redemption.
Preemptive Right
A shareholder's right to buy additional shares of a company's stock before it is offered to the public, maintaining their proportional ownership.
Common Stock
Equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends and capital appreciation.
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