A Rigid, Vertical Structure in an Uncertain Environment Prevents the Organization

question 75

True/False

A rigid, vertical structure in an uncertain environment prevents the organization form adapting to change.

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Definitions:

Crowding-Out Effect

Describes a situation in economics where increased public sector spending reduces or eliminates private sector spending, often due to higher interest rates or borrowed funds.

Private Saving

The portion of individual or household income that is not spent on consumption but saved for future use.

Private Investment

The expenditure by businesses on capital goods, such as machinery and buildings, and changes in inventories.

Crowding-Out Effect

A situation where increased government spending leads to a reduction in private sector investment.