Major Efforts to Improve Traditional Organizational Structures Seek to _______

question 7

Multiple Choice

Major efforts to improve traditional organizational structures seek to _______ and _______.One key emphasis in large organizations is to redefine the role of corporate headquarters.

• A) Reduce unnecessary control; focus on enhancing core competencies
• B) Reduce costs; increase shareholder control
• C) Reduce external shareholders; focus on enhancing core competencies
• D) Redefine boundaries; open the organization more fully to outside influence

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Definitions:

Discount Rate

The rate of interest that is utilized in a DCF analysis for calculating the current value of anticipated cash flows.

NPV

Net Present Value is a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and the present value of cash outflows.

Contracts

Legal agreements between two or more parties that are enforceable by law, outlining responsibilities, duties, and sharing of benefits.

IRR

Internal Rate of Return; the discount rate that makes the net present value of all cash flows from a particular project zero.