When Departments or Units Operate with Little Interaction,and the Profits

question 39

Multiple Choice

When departments or units operate with little interaction,and the profits and losses are simply added together,the units operate with ____ interdependence.

• A) pooled
• B) mixed
• C) functional
• D) hierarchical
• E) sequential

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Definitions:

Consumption

The action of using goods and services to fulfill needs or desires; usually the largest component of GDP.

Saving

The portion of income not spent on current expenditures or consumables, often put aside for future use or investments.

Opportunity Cost

The penalty of bypassing the alternative that ranks second in preference while making a choice.

Investment

The process of distributing funds with the aim of earning returns or profits.