Which of the Following Is Not an Assumption of Theory

question 60

Multiple Choice

Which of the following is not an assumption of Theory Y?

• A) The average human being learns, under proper conditions, not only to accept but to seek responsibility.
• B) The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is narrowly distributed in the population.
• C) External control and the threat of punishment are not the only means for bringing about effort toward organizational objectives.
• D) Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized.
• E) The expenditure of physical and mental effort in work is as natural as play or rest.

Assess investment valuations relative to the investor's required return and the capital market line.

Calculate the optimal percentage allocation between risky and risk-free assets to achieve a desired portfolio return.

Calculate the optimal percentage allocation between risky and risk-free assets to achieve a desired portfolio standard deviation.

Understand the concept and calculation of the capital allocation line and its slope.

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Definitions:

Profit Maximizing

The process of adjusting production and sale strategies to achieve the highest possible profits.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenues; represents the extra amount over the payment needed to keep a resource in its current use.

P = ATC

An equation indicating the price level (P) at which the average total cost (ATC) of production is exactly met, often representing a break-even point for firms in competitive markets.

Pure Monopolist

A single seller in a market with no close substitutes for the product, giving the seller significant control over prices and output levels.