An organization with high profitability, such as Wal-Mart, will be able to develop high organizational slack.

Question

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Organizational slack refers to the extra resources that an organization has beyond what is needed to operate efficiently. In general, organizations with high profitability are more likely to have more resources to allocate towards slack because they have more financial resources available. Therefore, it is likely that Wal-Mart, as a highly profitable organization, would be able to develop high organizational slack.

An Organization with High Profitability, Such as Wal-Mart, Will Be