Which of the Following Statements About Skunkworks Is False

question 66

Multiple Choice

Which of the following statements about skunkworks is false?

• A)They are independent work units.
• B)They are used to encourage creative thinking and brainstorming.
• C)They refer to a specialized type of outside contractor that corporations use to develop entrepreneurial ideas.
• D)They help managers set aside their usual routines and practices.

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Definitions:

Systematic-Risk Event

An event that affects all securities in the financial market and cannot be mitigated through diversification.

Federal Reserve

The central banking system of the United States, responsible for setting monetary policy, issuing currency, and regulating banks.

Interest Rates

The amount charged by lenders to borrowers for the use of assets, expressed as a percentage of the principal, and typically noted on an annual basis.

Excess Return

The return on an investment over the risk-free rate or over an investment's benchmark.