Multidivisional Companies Unable to Obtain a Surrogate Beta for Estimating

question 64

True/False

Multidivisional companies unable to obtain a surrogate beta for estimating a division's risk-adjusted rate of return sometimes can estimate beta from internal accounting data. This approach is called the pure play method.

---

Definitions:

Feelings of Anger

Emotional responses characterized by annoyance, displeasure, or hostility towards someone or something perceived as harmful or threatening.

Lose-lose Conflicts

Situations in conflict resolution where all parties involved suffer losses or negative outcomes.

Avoidance

A conflict management style in which the person pretends that a conflict doesn’t really exist.

Accommodation

A conflict management style in which the person plays down differences and highlights similarities to reduce conflict.