What Can Managers Do to Avoid the Status Quo Trap

question 62

Multiple Choice

What can managers do to avoid the status quo trap?

• A) ask "What if our strategy is wrong?"
• B) ask "What not do this?"
• C) over-searching when considering critical problems
• D) all of these

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Definitions:

Coupon Bond

A debt security that pays the holder a fixed interest rate (the coupon) periodically until maturity, at which point the principal is repaid.

Basis Point

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of 1%.

Bond Prices

The cost or value of a bond, which can fluctuate based on interest rates, credit quality of the issuer, and other factors.

Yields

Yields refer to the earnings generated and realized on an investment over a particular period, expressed as a percentage based on the investment’s cost, its current market value, or its face value.