The Potential for Difficulty to Convert an Investment to Cash

question 68

Multiple Choice

The potential for difficulty to convert an investment to cash is referred to as ____________ risk.

• A) interest-rate
• B) inflation
• C) income
• D) personal
• E) liquidity

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Definitions:

Organizational Change

Organizational change refers to the process through which a company or organization goes through a transition to achieve a desired state, improve processes, technologies, or organizational structure.

New Norms

Emerging standards or practices that become accepted within a society or organization.

Organizational Learning

The capacity of an organization to acquire, apply, and transfer knowledge to improve its performance over time.

Double-Loop Learning

A learning process where errors are corrected by reevaluating and modifying the underlying norms, policies, and objectives that led to the errors, in contrast to single-loop learning which focuses only on fixing the errors themselves.