The Greater the Environmental Uncertainty, the More an Organization Needs

question 31

Multiple Choice

The greater the environmental uncertainty, the more an organization needs to become ________.

• A) organic
• B) mechanistic
• C) specialized
• D) departmentalized

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Definitions:

Actuarial Information

Data and analysis provided by actuaries, concerning the evaluation of financial risks, especially those related to insurance and pensions, using mathematics, statistics, and financial theories.

Capital Lease

A lease agreement that is classified as a purchase by the lessee for accounting purposes, allowing the lessee to benefit from asset depreciation and interest expense deductions.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, often used in discounting cash flows.

Annuity Due

An annuity where payments are made at the beginning of each period instead of the end.