Which of the Following Is Not True of Corporate Culture

question 93

Multiple Choice

Which of the following is not true of corporate culture?

• A) Corporate culture has a strong tendency to resist change.
• B) Corporate culture can strongly affect an organization's ability to shift its strategic direction.
• C) A problem for a strong culture is that a change in mission is not likely to be successful if it is in opposition to the accepted corporate culture.
• D) Corporate culture often rests on preserving stable relationships.
• E) Corporate culture has little influence on the behavior of the firm's employees.

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Definitions:

Capital Structure

The mix of debt and equity financing that a company uses to fund its operations and growth.

Financial Distress

A situation where a company is struggling to meet its financial obligations, which may lead to bankruptcy if not adequately addressed.

Tax Benefit

A reduction in tax liability provided by allowances, deductions, or credits.

Financial Leverage

It refers to the use of borrowed funds by a company to finance its investments, aiming to increase the returns on equity.