Matthew W Ford
Session 9 Study Notes (Updated 06/26/2012 05:12 PM)
What is a 'strategic theme?' Be able to list and explain the 12 strategic themes discussed in class and provide an example of each.
true or false: An organization can pursue only one strategic theme at a time.
Risk & Leverage
Define risk. Define leverage. Does leverage increase or decrease risk? Explain.
List 3 factors that influence degree of leverage.
true or false: Over the past century, degree of leverage has generally been decreasing.
Describe 3 strategies for reducing leverage.
true or false: Bailouts are likely to increase the pool of economic resources available in the future.
true or false: Lower appetite for risk is associated with greater degrees of leverage.
Define moral hazard. Give an example.
true or false: Bailouts are likely to reduce the degree of moral hazard present in markets.
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