In Order to Reduce Risk in a Firm, the Firm

question 38

Multiple Choice

In order to reduce risk in a firm, the firm would seek to enter a business that

• A) has a high positive correlation with its present business.
• B) has a zero correlation with its present business.
• C) has a high negative correlation with its present business.
• D) has a high negative variation with its present business.

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Definitions:

Planning Objectives

Goals set during the planning phase that outline the desired outcomes of plans and strategies.

Official Objectives

The formal goals set by an organization to guide its operations and strategic direction.

Organizational Culture

The shared values, beliefs, and norms that influence how people within an organization interact with each other and with stakeholders outside the organization.

Value System

A set of consistent values and principles that guide an individual's or organization's behavior, decisions, and actions.