What Is the Premise of the Resource Dependency Theory

question 50

Multiple Choice

What is the premise of the resource dependency theory?

• A)Organizations are most effective when decentralized.
• B)Organizations are created to meet specific goals.
• C)Organizations require social contacts.
• D)Organizations must obtain resources to survive.

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Definitions:

Market Risk Premium

The incremental profit expected by an investor when they decide to hold a market portfolio with risk rather than secure, riskless assets.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by Treasury bills, serving as a benchmark for assessing the risk and return of other investments.

Good Economy

An economic state characterized by strong growth, low unemployment, and stable prices, reflecting overall health and prosperity.

Poor Economy

A situation characterized by low economic activity, high unemployment, and declining market conditions.