Which of the Following Is Not a Source of Organizational

question 14

Multiple Choice

Which of the following is not a source of organizational inertia?

• A)The tendency for organizations to limit themselves to local search
• B)Organizational routines
• C)Complementarities between the different activities of a firm
• D)The hierarchical structure of large firms

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Definitions:

Interest Charges

The costs incurred for borrowing money, calculated as a percentage of the total amount borrowed.

Management Reserves

Budgetary allocations set aside for unforeseen changes in the scope and cost of a project.

Contingency Reserves

Allocated budget within a project to address unforeseen costs or risks that may arise.

Budget Baseline

A reference point in the project budgeting process that represents the approved plan for project expenditure, against which actual costs are measured.