Which of the Following Outcomes Is Not a Dysfunctional Consequence

question 32

Multiple Choice

Which of the following outcomes is not a dysfunctional consequence of conflict?

• A) dissolution of common ties
• B) reassessment of group goals
• C) destruction of the group
• D) poor communication
• E) reduced group cohesiveness

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Definitions:

Financial Leverage

It refers to the use of borrowed funds by a company to finance its investments, aiming to increase the returns on equity.

M&M Proposition I

A theory in corporate finance stating that in a perfect market, the value of a firm is unaffected by how it is financed, whether through debt or equity.

Equity Risk

The risk of loss associated with fluctuations in the equity market.