The New York Times Recently Profiled a Number of Contemporary

question 47

Multiple Choice

The New York Times recently profiled a number of contemporary organizations such as Google that are shucking traditional bureaucratic organizations for ones that are looser and less hierarchical. According to Max Weber, compared to more traditional forms of organization, what is one outcome that a looser, less hierarchical organization is more likely to achieve?

• A) efficiency
• B) rationality
• C) compliance
• D) innovation

---

Definitions:

Indexed Mutual Fund

A mutual fund designed to replicate and manage a portfolio to match the performance of a market index.

Economic Downturn

A period of reduced economic activity characterized by declines in spending and investment, often leading to recession.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.

Diversifiable Risk

A type of risk that can be reduced or eliminated from a portfolio through investments in a variety of assets, also known as unsystematic risk.