Which of the Following Strategies Can Help Business Firms Stimulate

question 67

Multiple Choice

Which of the following strategies can help business firms stimulate innovation?

• A)Hiring employees who have low risk tolerance
• B)Letting employees know that they must fear failure and should not attempt anything that might fail
• C)Instructing managers to use micromanagement techniques
• D)Using teams of writers to build scenarios of opportunities and threats

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Definitions:

Beta

A measure of the volatility or risk of a security or a portfolio in comparison to the market as a whole.

Diversifiable Risk

A type of investment risk that can be reduced or eliminated through diversification, including risks specific to an industry, company, or region.

Unsystematic Risk

The risk that is specific to a company or industry, which can be reduced through diversification.

Individual Investor

An individual investor is a non-professional private investor who buys and sells securities for their personal account.