Different Models Have Been Available for Leaders to Use When

question 5

Multiple Choice

Different models have been available for leaders to use when considering what actions need to be taken. Hard Systems methodology (HSM) can be applied to Tame problems which can be hard to solve but tend to have a defined beginning and end.
Senior (2002) uses a HSM model that has three distinct stages to a process which can be best summarised as:

• A) 1. Test 2. Pilot 3. 'Big Bang'
• B) 1. Diagnostic, 2. Considered, 3. Prioritised
• C) 1. Developed, 2. Considered, 3. Prioritized
• D) 1. Description, 2. Options, 3. Implementation

---

Definitions:

Business Risk

The exposure a company or investor faces due to uncertainties in the market or industry, impacting the company's ability to generate profits.

Financial Risk

The possibility of losing money on an investment or business venture, including risks related to currency, interest rates, and solvency.

Debt/Equity Ratio

A ratio exemplifying the balance of equity to debt in the financing structure for a company’s assets.

Interest Tax Shield

A deduction allowed for the interest paid on debt, thereby reducing taxable income and the total tax owed.