In Stable and Simple Environments, ________

question 21

Multiple Choice

In stable and simple environments, ________.

• A) organic designs are most effective
• B) mechanistic designs are most effective
• C) low formalization is necessary
• D) decentralization is necessary

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Definitions:

Net Cash Flow

The difference between a company's cash inflows and outflows over a period, indicating overall liquidity.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods, leading to exponential growth of the investment or loan.

Present Value

The current value of a future amount of money or stream of cash flows, given a specified rate of return.

Required Rate

The minimum return or yield an investment must offer to be considered viable, often referred to as the required rate of return.