The Final Part of the Strategy Formulation Process Is

question 32

Multiple Choice

The final part of the strategy formulation process is:

• A) choosing business-level strategies.
• B) choosing functional-level strategies.
• C) choosing corporate-level strategies.
• D) choosing functional-level goals.
• E) choosing business-level goals.

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Definitions:

Opportunity Costs

The cost of opting for one alternative over another, typically representing the benefits one misses out on when choosing a particular option.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production supplies.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision.

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered, and thus should not affect future business decisions.