If an Organization Has a Profit-Sharing Plan in Which Employees

question 78

Multiple Choice

If an organization has a profit-sharing plan in which employees are able to purchase the company's stock at a discount whenever the organization makes huge profits, then this organization follows Fayol's principle of:

• A) centralization.
• B) discipline.
• C) initiative.
• D) esprit de corps.
• E) remuneration of personnel.

Understand the fundamentals of the Capital Asset Pricing Model (CAPM) and its assumptions.

Learn how to graphically represent the expected return-beta relationship through the Security Market Line.

Analyze the valuation of securities using CAPM, including the determination of underpriced and overpriced securities.

Understand the concept and calculation of alpha in CAPM to assess the performance of securities against the expected market returns.

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Definitions:

Dangerous

Involving potential harm or risk; likely to cause damage or injury.

Expertise

The skilled knowledge or proficiency acquired through experience or education in a particular field or subject.

Subject

The part of a sentence that indicates what the sentence is about, usually performing the action or being in the state described by the predicate.

Appeal to Authority

A logical fallacy where an argument is made based on the authority of a person or entity, rather than on evidence or reasoning.