Organizations Following A(n) ________ Strategy Try to Both Minimize Risk

question 48

Multiple Choice

Organizations following a(n) ________ strategy try to both minimize risk and maximize opportunity for profit, moving into new products or new markets only after innovators have proven their viability.

• A) innovation
• B) cost-cutting
• C) imitation
• D) organic
• E) mechanistic

---

Definitions:

Miller-Orr Model

A financial model used for managing cash flows and cash reserves, focusing on maintaining balances within certain limits at minimum cost.

Upper Limit

The maximum value or level that is allowed or attainable in a given situation.

Miller-Orr Model

A financial model used to manage cash balances by setting upper and lower limits on cash reserves within which no financing is needed.

Cash Balance Target

A financial strategy that involves setting a specific amount of cash reserves that a company aims to maintain to meet future expenses, emergencies, or investment opportunities.