In Describing the Relationship Between Structure and Strategy, It Can

question 22

Multiple Choice

In describing the relationship between structure and strategy, it can be said that __________.

• A) structure follows strategy
• B) strategy follows structure in smaller organizations
• C) strategy follows structure
• D) strategy and structure are always handled equally

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Definitions:

Debt-To-Equity Ratio

A measure that compares a company's total liabilities to its shareholder equity, used to evaluate financial leverage.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets (cash, marketable securities, and receivables), indicating liquidity without relying on inventory sales.

Book Value Per Share

A metric calculated by dividing a company's equity available to common shareholders by the number of outstanding shares.

Purchasing Inventory

Purchasing inventory involves the acquisition of raw materials, work-in-progress, or finished goods to ensure that production can meet demand without unnecessary delay or stockouts.