Which of the Following Is True Regarding the Majority and Minority

question 67

Multiple Choice

Which of the following is true regarding the majority and minority groups in an organization?

• A) The minority group can have more people than the majority group.
• B) The majority group has more people than the minority group.
• C) The top management constitutes a minority group that commands decision-making power.
• D) The majority group in any organization lacks social status and acceptance.
• E) The minority group possesses decision-making power in most organizations.

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Definitions:

Dividend Irrelevance

Dividend Irrelevance theory suggests that a company's dividend policy has no effect on either its value or its cost of capital, according to Modigliani and Miller.

Growth Created Value

The increase in value that a company achieves through the expansion of its operations or activities.

Future

Financial contracts obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price.

Clientele Effect

The theory that a company's stock price changes according to the demands and preferences of its existing shareholder base.