Even Though a Business Firm Can Be Viewed as a Portfolio

question 60

True/False

Even though a business firm can be viewed as a portfolio of assets, firms are not rewarded for selecting a diversified portfolio of assets because investors can more efficiently diversify the risk on their own.

Know the objectives of human resource strategies in effectively utilizing labor and designing jobs.

Differentiate between job enlargement and job enrichment in terms of responsibilities and outcomes.

Understand how maintaining a stable workforce affects wage policies in comparison to demand-driven employment.

Acknowledge the importance of employee empowerment for the success of self-directed teams.

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Definitions:

Internal Causes

Reasons or factors that originate within an individual or system, leading to certain outcomes or behaviors.

External Causes

Factors or conditions outside of an individual's control that impact events or outcomes, often used in analyzing behaviors or situations.

Self-Serving Bias

The tendency to attribute one’s successes to internal causes and one’s failures to external causes.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology and contributed significantly to the understanding of the human psyche.