The Competition for Resources Among Those Representing Different Organizational Functions

question 70

Multiple Choice

The competition for resources among those representing different organizational functions within a firm often leads to:

• A) erosion of social capital.
• B) heightened communication.
• C) organizational politics.
• D) empowerment of organizational members.

---

Definitions:

Plowing Back

The reinvestment of earnings by a company back into its own operation or projects, also known as retained earnings.

ROE

Return on Equity, a financial ratio that measures the profitability of a business in relation to shareholder’s equity, indicating how well a company uses investments to generate earnings growth.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments.

Constant Growth DDM

A valuation model for stocks that assumes dividends grow at a constant rate in perpetuity, used to calculate the present value of future dividend payments.