Which One of the Following Is Not Particularly Helpful in Perpetuating

question 39

Multiple Choice

Which one of the following is not particularly helpful in perpetuating a company's culture?

• A) Systematic indoctrination of new members in the culture's fundamentals.
• B) Frequent reiteration of core values by senior managers and group members.
• C) Visibly rewarding those who display cultural norms and penalizing those who don't.
• D) Maintaining a consistent strategic vision and strategic intent over time.
• E) Telling and retelling of company legends and regular ceremonies honoring members who display desired cultural behaviors.

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Definitions:

Beta

An indicator of the level of systematic risk or volatility of a security or a portfolio relative to the entire market.

Total Risk

The complete range of risks associated with an investment, including both systematic risk (market related) and unsystematic risk (company or industry specific).

Standard Deviation

A measure of the dispersion or variability of a set of data points from its mean, often used in finance to gauge investment risk.

Risk Premium

The extra return above the risk-free rate that investors require to compensate them for holding a risky asset.