Briefly explain the importance of diversification in investing.
What will be an ideal response?
Diversification is an important part of investing because it is not a good idea to own stocks in only a handful of companies. If one of them were to fail, you would lose a lot of your money. A better strategy is a diversified portfolio with stocks in a dozen or more companies including companies in separate industries. A severe decline in one stock would be balanced by the performance of others.
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Behavioral science relies on __________ for developing theories about human behavior that can help managers.
A. rules of thumb B. scientific research C. intuition D. simulations E. trial and error
Ideally, which report format should be used for a proposal?
a. letter format b. manuscript format with transmittal letter c. memorandum format d. format preferred by the recipient
Which of the following will be categorized as an operating activity on the statement of cash flows?
A) Cash received by selling old equipment B) Cash paid for purchase of new machinery C) Cash paid for purchase of office supplies D) Cash received from issuance of shares of common stock
Managing change is an ongoing process whose objective is to enhance the ability of an organization to anticipate and respond to developments in only its external environment.
Answer the following statement true (T) or false (F)