Banks Spend More Money on Their Head Office Buildings Than

question 23

Multiple Choice

Banks spend more money on their head office buildings than most other large corporations because:

• A)They tend to be located in financial centers where property prices are high
• B)They offer "experience goods",hence they need to signal wealth and stability
• C)Their CEOs are more committed to the display of wealth than other CEOs
• D)Because their products are essentially commodities,they need to find alternative ways of differentiating.

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Definitions:

Formal Group

An organized collection of individuals with a defined structure that is established to achieve specific goals.

Organizational Boundaries

Limits that define an organization's structure, roles, and responsibilities, and separate it from its environment and other organizations.

Grapevine Network

An informal communication network within an organization, characterized by the personal, unofficial sharing of information among employees.

Laissez-Faire Leadership

A leadership style characterized by minimal supervision, where leaders provide tools and resources but allow individuals to solve problems on their own.