Which of the Following Does Not Explain Why Organizations Are

question 32

Multiple Choice

Which of the following does not explain why organizations are prone to inertia and slow to change?

• A) personal time constraints
• B) political barriers
• C) vested interests in the status quo
• D) entry barriers

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Definitions:

Modified Duration

A formula that predicts the change in a bond's price for a 1% change in interest rates, considering the bond's yield to maturity.

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 0.01%.

Declining Interest Rates

A situation in which the general level of interest rates in the economy is decreasing, affecting borrowing costs, investment returns, and economic activity.

Capital Gain

The profit realized from the sale of a capital asset, such as stock or real estate, when the selling price exceeds the original purchase price.