Which of the Following Is One of the Five Main

question 53

Multiple Choice

Which of the following is one of the five main arguments favoring decentralization? 

• A) It can facilitate coordination.
• B) It can help ensure that decisions are consistent with organizational objectives.
• C) It can give top-level managers the means to bring about needed major organizational changes.
• D) It permits greater flexibility.

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Definitions:

Capital Asset Pricing Model

An approach outlining the connection between inherent risks and the expected return of assets, with a focus on stocks.

SML

The Security Market Line, a graphical representation used in the capital asset pricing model (CAPM) to show the relationship between the risk of an investment and its expected return.

Expected Return

The anticipated gain or loss on an investment, considering both the risk and return.

Expected Return

Expected return is the anticipated profit or loss from an investment, based on the potential outcomes and their probabilities, often used to evaluate investment choices.