According to Exhibit 4

question 3

Multiple Choice

According to Exhibit 4.1 in the textbook (Ratio of Market Value to Book Value for Selected Companies) ,firms with high market value to book value ratios achieve this because of their ________ investment in ________ resources and technological expertise.

• A) low; physical
• B) low; tangible
• C) high; knowledge
• D) high; liquid asset

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony in decision-making results in an irrational or dysfunctional outcome.

Cohesive Group

A group characterized by a strong sense of unity and togetherness, often leading to more effective teamwork.

Risky Course

A decision or path chosen that involves a higher potential for negative outcomes or loss.

Self-Managed Teams

Groups that operate without direct supervision, often responsible for setting their own goals and managing their own processes.