Why Are Rotating Credit Associations Common in Societies with a Traditional

question 7

Multiple Choice

Why are rotating credit associations common in societies with a traditional sharing system?

• A) You are obliged to help when others ask for money, so it's easier to save if you have an obligation to save for your contribution.
• B) Rotating credit associations are by nature an altruistic venture, with individual contributors receiving little in return.
• C) Societies with traditional sharing systems rarely have formal banking institutions, so there is no alternative way to save money.
• D) Rotating credit is a complex version of generalized reciprocity, which has its roots in traditional sharing systems.

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Definitions:

Divisional Structure

An organizational layout in which the company is divided into semi-autonomous units or divisions, each responsible for a particular business area or market segment.

Multidomestic Strategy

A strategy used by companies where they tailor their products or services to each country or market in which they operate, accommodating local preferences and conditions.

Product Development

The process of bringing a new product or service to market, from idea generation to commercialization.

Functional Organizational Structure

An organizational framework where the company is divided into departments based on their function, such as marketing, finance, or manufacturing.