Question 5

Case study

More than a decade has passed since risky mortgage lending, excessive borrowing, and soaring housing prices collided in 2008 to trigger one of the more severe financial crises in American history. Since then, economists have been studying the factors that led to that disaster and the subsequent Great Recession to help policymakers avoid a repeat of that painful episode.

Greenwood, Hanson, and colleagues have identified the signs that potentially signal trouble. Three years of rapid growth in credit and asset prices increased the odds of a crisis to 40 percent, up from 7 percent during typical conditions, they reported.

The team studied trends in outstanding credit, stock market values, and home prices from 1950 to 2016 for 42 countries. They found the potential for a financial crisis was highest in years when both stock prices and non-financial business borrowing where rising rapidly, or when both home prices and household debt were growing quickly.

That combination is "a natural signal of an outward shift in the supply of credit, which then sows the seeds of its own destruction," the researchers write in their working paperPredictable Financial Crises, released in June by the National Bureau of Economic Research. The paper was coauthored by Andrei Shleifer, the John L. Loeb Professor of Economics at Harvard University, and Jakob Ahm Srensen, a doctoral fellow at the Copenhagen Business School. More than a decade has passed since risky mortgage lending, excessive borrowing, and soaring housing prices collided in 2008 to trigger one of the more severe financial crises in American history. Since then, economists have been studying the factors that led to that disaster and the subsequent Great Recession to help policymakers avoid a repeat of that painful episode.

Greenwood, Hanson, and colleagues have identified the signs that potentially signal trouble. Three years of rapid growth in credit and asset prices increased the odds of a crisis to 40 percent, up from 7 percent during typical conditions, they reported.

The team studied trends in outstanding credit, stock market values, and home prices from 1950 to 2016 for 42 countries. They found the potential for a financial crisis was highest in years when both stock prices and non-financial business borrowing where rising rapidly, or when both home prices and household debt were growing quickly.

That combination is "a natural signal of an outward shift in the supply of credit, which then sows the seeds of its own destruction," the researchers write in their working paperPredictable Financial Crises, released in June by the National Bureau of Economic Research. The paper was coauthored by Andrei Shleifer, the John L. Loeb Professor of Economics at Harvard University, and Jakob Ahm Srensen, a doctoral fellow at the Copenhagen Business School.

1. All of the corporation's elements that have a decisional, organizing, informational, motivational

character, and complete which the entire set of administration processes and relationships are

being keep fit in order to achieve the best usefulness and the highest effectiveness - outlines:

2. The entrepreneurial-managerial method of designing and promoting a new business or of

significantly developing an existing one, method that starts with identifying an economic

opportunity and by which one determines the objectives that are to be accomplished, sizes and

structures the main resources and activities, aiming to prove that it can be profitable and it is

worth to be supported by the potential stakeholders - is

3. The method used in management that consists in identifying the strengths and the weaknesses

of the analysed area together with their respective causes, and that is finalized by making

corrective or developmental suggestions - is named as:

4. The quantity of personnel a administrator can _________resourcefully and effectively

accomplish characterizes_______---

5. The major shortages in the announcement process__________ (the most momentous barriers

to communiqu) can be______

6. The course an material_________ or a grouping of information follows between the

correspondent and the earpiece outlines_____

7. The functional areas of the company are: a. research-development; b. finance-accounting; c.

commercial; d. organizing; e. planning; f. motivating; g. control-evaluation; h. human resources;

i. coordinating; j. manufacturing/operations

8. The decision that has direct consequences on the decisions, actions and behaviors of at least

another person- is a decision:

9. he golden triangle of organizing refers to the judicious connection of: a. tasks; b. activities; c.

duties; d. competencies; e. responsibilities.

10. The decision that has direct consequences on the decisions, actions and behaviors of at least

another person- is a decision: