Organizations Should Define Themselves Not According to the Products They

question 179

Multiple Choice

Organizations should define themselves not according to the products they produce but according to

• A) how profitable they are.
• B) the price of their stock.
• C) the abundance of their product selection.
• D) how they treat employees.
• E) how they satisfy customers.

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Definitions:

Proportions

The relationship between parts of a whole, expressed as fractions, percentages, or ratios.

Capital Market Line

A line used in the capital asset pricing model to illustrate the rates of return for efficient portfolios depending on the risk (measured by standard deviation).

Capital Allocation Line

A graphical representation that shows risk and return of possible portfolios by combining a risk-free asset with a portfolio of risky assets.