In Order to Develop New Financial Instruments for Sale to Its

question 51

Multiple Choice

In order to develop new financial instruments for sale to its clients,a bank brings together a cross-functional team consisting of members from the finance,legal,and marketing units.Which of the following is a problem that is likely to arise from such a cross-functional team?

• A) The widely varying initial perspectives of team members can increase conflicts.
• B) The knowledge of the team is not specialized and this will hamper effectiveness.
• C) The team will not have sufficient technical knowledge for the project.
• D) The diverse backgrounds of team members will stifle creativity.

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Definitions:

Upward-Sloping

Refers to a line on a graph that demonstrates an increase in value on the vertical axis as the value on the horizontal axis increases; typically related to supply curves in economics.

Pure Competition

Another term for a purely competitive market, emphasizing the absence of barriers to entry and the presence of numerous sellers and buyers.

Average Total Cost

The per-unit production cost, obtained by dividing the overall expenses of production by the number of items produced.