A company makes and sells office equipment. When employees develop new ideas that save the company money or increase profits, they are paid a bonus. If their ventures do not work, they are severely punished and sometimes terminated

The founder wants employees to be more creative. To BEST encourage creativity, the founder should ________.
A) eliminate merit pay within the organization
B) eliminate punishments for unsuccessful risk taking ventures
C) introduce a rite of passage emphasizing company traditions
D) increase the hours that employees need to work

B

Business

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Indicate whether the statement is true or false

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Since stockholders are able to reduce their exposure to risk by efficiently diversifying their holdings

of securities, there is no reason for individual firms to seek diversification of their holdings of assets. Indicate whether the statement is true or false

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