If Performance Data and Activity Reports Indicate Undesirable Performance as a Result

question 69

Multiple Choice

If performance data and activity reports indicate undesirable performance as a result of inappropriate use of the strategic management process,operational managers must

• A) immediately notify the board of directors.
• B) change the strategic management model.
• C) know about it so that they can correct the employee activity.
• D) allow sufficient time to pass to verify if it is the process or just the usage that is the problem.
• E) check the performance data to ensure their accuracy and take two more measurements.

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Definitions:

Unique Risk

Also known as unsystematic or idiosyncratic risk, it refers to the risk associated with a particular company or industry that can be mitigated through diversification.

Securities

Financial vehicles denoting an ownership interest in corporations available on public exchanges, debt obligations held against governmental entities or businesses through bonds, or potential ownership through options trading.

Diversify

Diversify refers to the strategy of spreading investments across various financial instruments, industries, and other categories to reduce exposure to risk.

Efficient Frontier

In portfolio theory, it represents the set of optimal portfolios that offer the highest expected return for a given level of risk or the lowest risk for a given level of expected return.