The Greater the Environmental Uncertainty, the More an Organization Needs

question 31

Multiple Choice

The greater the environmental uncertainty, the more an organization needs to become ________.

• A) organic
• B) mechanistic
• C) specialized
• D) departmentalized

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Definitions:

Net Present Value

A financial metric used to evaluate the profitability of an investment or project, calculated by subtracting the initial investment from the present value of future cash flows.

Internal Rate Of Return

The discount rate at which the net present value of an investment project is zero; the rate of return promised by a project over its useful life.

Discount Rate

The rate of interest employed to calculate today's value of anticipated future cash streams in discounted cash flow evaluation.

Discount Rate

An interest rate used to discount future cash flows to their present value, often applied in capital budgeting and investment valuation.