Which of the Following Is a Negative Aspect of the Ivory

question 83

Multiple Choice

Which of the following is a negative aspect of the ivory tower approach to the strategic planning process?

• A) It can lead to tensions between corporate-level and functional-level managers.
• B) The strategic role of autonomous decisions made by lower-level managers can be ignored.
• C) Decisions are made by top managers that are not connected to the day-to-day operations.
• D) It does not recognize the importance of the participation of managers at all corporate levels as a means for successful strategic planning.
• E) All of these are negative aspects of the ivory tower approach to the strategic planning process.

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Definitions:

Charging to Expense

The process of recognizing a cost as an expense in the income statement during the period in which it is incurred.

Historical Cost Principle

An accounting principle requiring all financial items to be recorded based upon original cost, without adjusting for inflation or market value.

Primary Quality

Fundamental or inherent characteristics that determine the value or usefulness of something.

Model of Business Reporting

A framework or standard outlining the principles and requirements for presenting financial and non-financial information about a company's performance and position.