In Virtual Organizations, It Is Difficult to Establish a Common

question 104

True/False

In virtual organizations, it is difficult to establish a common set of norms.

---

Definitions:

Prudent Investor Rule

Prudent Investor Rule is a legal guideline for fiduciaries that mandates investment strategies should be made as a prudent investor would, considering risk, return, diversification, and the objectives of the trust or beneficiary.

Active Portfolio Management

A strategy where managers make specific investments with the goal of outperforming an investment benchmark index.

Passive Strategy

An investment approach that involves holding a diversified portfolio to match the performance of a market index over time, minimizing buying and selling actions.

After-tax Holding-period Return

The return on an investment after accounting for taxes, over the period it was held, reflecting the true gain or loss.