Buy 8 Empty Lots

question 50

Multiple Choice

Buy 8 empty lots. At the end of 5 years you plan to sell all the real estate and you expect both houses and lots to appreciate in value.Owning and renting out houses will also provide rental income,but there will also be expenses such as repairs and insurance that would not be involved for empty lots.The amount of appreciation depends on the real estate market that you expect to be one of the three levels shown in the table below along with the expected payoff values (shown in thousands of dollars) . Assume that you estimate the following probabilities for the states of the real estate market: Based on the expected value criterion you should choose alternative:

• A)1.
• B)2.
• C)3.
• D)1 or 3 because they are tied.

Describe the impact of social norms on individual behavior.

Explain the concept of groupthink and its potential negative outcomes on decision-making.

Understand the processes behind obedience to authority.

Identify the effects of group dynamics on individual actions, including deindividuation and the bystander effect.

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Definitions:

Organic Structure

identifies a flexible, adaptive organizational design characterized by decentralized decision-making, broad job descriptions, and a network-based communication pattern.

Modular Organization

A flexible organizational structure where functions are divided into modules that can be easily reconfigured or replaced.

Strategic Control

A management process used to monitor the execution of an organization's strategy and make adjustments as necessary.

Network Forms

Refers to the structure and arrangement of connections and interactions within a social or organizational network.