While Operating Leverage Results Only in a Magnification of Returns

question 162

True/False

While operating leverage results only in a magnification of returns, financial leverage results only in a magnification of risk.

Distinguish between various forms of departmentalization and their suitability to organizational goals.

Understand how organizational size, age, and environment influence structure and management style.

Recognize the importance of specialized structures such as matrix, divisional, and network structures.

Comprehend how organizational growth, diversification, and core competencies affect structural choice.

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Definitions:

Intrinsic Rewards

Personal satisfaction and enjoyment derived from engaging in an activity, not contingent upon external rewards or recognition.

Extrinsic Rewards

Rewards given by external factors, such as money or praise, which motivate behavior not inherently rewarding.

Brain Stimulation

Techniques for applying electrical or magnetic fields to the brain to influence neurological function.

Olds and Milner

Psychologists known for discovering the brain's pleasure center by conducting experiments involving electrical brain stimulation in rats.