In the Context of Organizational Decline, Which of the Following

question 97

Multiple Choice

In the context of organizational decline, which of the following is true of the blinded stage?

• A) Key managers fail to recognize the internal or external changes that will harm their organizations.
• B) Management recognizes the need to change but still takes no action.
• C) Companies plan to cut costs and restore profits rather than recognizing the need for fundamental changes.
• D) Companies lack the resources to fully change how they run their businesses.

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Definitions:

Saving Rate

The portion of income that is not spent on consumption but is saved or invested for future use.

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold; countries agree to convert currency into a fixed amount of gold.

Fixed Exchange-Rate

A regime under which the government or central bank ties the official exchange rate to another country's currency or the price of gold.

Capital Account

A national account that shows the net change in asset ownership for a country. It includes foreign investments and loans.