Organizations in Which of the Following Types of Industries Would

question 32

Multiple Choice

Organizations in which of the following types of industries would face the greatest amount of environmental uncertainty?

• A) Beer distributors because of simplicity
• B) Universities because of complexity
• C) Airlines because of instability
• D) Appliance manufacturers because of complexity

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Definitions:

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.

Positively Correlated

A term describing two variables that move in the same direction, such that when one variable increases, the other also increases.

Securities' Returns

The profit or loss generated on a security over a particular period, usually expressed as a percentage.

Variances

The quantitative measure of the difference between actual and expected behavior, often used in finance to assess volatility of returns or tracking errors.