Organizations Operating in Diverse Environments Should

question 154

Multiple Choice

Organizations operating in diverse environments should

• A)adopt a functional structure.
• B)develop a set of formal rules and regulations specifically addressing what employees should do about that diversity.
• C)centralize so that more decisions are made by top management alone.
• D)adopt a divisional structure aligned with that diversity.
• E)do none of these things.

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Definitions:

Stock Price

This is the current price at which a share of a company is bought or sold in the market.

Insolvent Firm

A business that cannot meet its financial obligations as they come due because its liabilities exceed its assets.

Prior Earnings

The amount of profit a company made in a preceding period, often used as a benchmark or comparison for current financial performance.

Dividend Irrelevance Theory

The theory that suggests that dividend policy has no effect on either the price of a firm's stock or its cost of capital.