Exam 3: The Management Environment

Write a series of rules that a company could use to encourage its employees to be risk-takers and innovators.

Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers. Theodore has just read an article that says that the low interest rates that currently prevail are likely to end in the coming months. Theodore thinks that TJ Soft may need to apply for a loan now to avoid high costs later. Which component of the external environment will affect TJ Soft the most in this situation?

Organizational culture largely determines how much risk members of an organization will take.