The Tragic Cases of the Challenger and the Colombia Are

question 82

Multiple Choice

The tragic cases of the Challenger and the Colombia are used to illustrate the point that

• A) people need to be more responsible in their jobs.
• B) the informal network does not always have a positive effect.
• C) rigid conformity within an organization can be very dangerous.
• D) failure to follow the chain of command may end in tragedy.

---

Definitions:

Unrealized Loss

A financial situation where an investment holds a lower market value than its purchasing price, yet the investor has not actually sold it to incur a realized loss.

Amortized Cost

The initial investment cost adjusted for amortization or depreciation over the period of the investment.

Effective Interest Rate

The real cost of borrowing after adjusting for compounding interest and all fees. It provides a more accurate representation of the actual financial charge associated with a loan.

Trading Security

A financial instrument that is bought and sold for the purpose of generating profits on short-term fluctuations in price.