Which of the Following Statements Concerning the External Environment Is

question 118

Multiple Choice

Which of the following statements concerning the external environment is true?

• A)Different interest groups use identical criteria to evaluate organizational effectiveness.
• B)Different interest groups seldom make conflicting demands on organizations.
• C)Different parts of an organization will often be concerned with different components of its environment.
• D)The smaller an organization,the more control it is likely to have over its environment.
• E)Customers,suppliers,and employees are all components of an organization's external environment.

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Definitions:

Interest Rate Risk

The potential for loss due to a change in interest rates affecting investment values or borrowing costs.

Time To Maturity

The remaining life of a debt instrument, at the end of which the principal is usually repaid.

Coupon Rate

The annual interest rate paid by a bond relative to its face value, expressed as a percentage.

Put Provision

An option clause in a bond or preferred stock allowing the holder to sell back the security to the issuer at a predetermined price before maturity.