In the First Step of Strategic Management, Identifying the Current

question 57

Multiple Choice

In the first step of strategic management, identifying the current strategies and goals provides________ .

• A) an understanding of what the competition is doing
• B) a basis to determine if the goals need to be changed
• C) important information about an organization's specific resources and capabilities
• D) an idea of what trends and changes are occurring

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Definitions:

Fixed Expenses

Costs that do not vary with the level or amount of goods or services produced or sold.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and profits.

Fixed Expenses

Expenses that remain constant regardless of the amount of output or sales within a brief timeframe, including lease payments, wages, and coverage fees.

Break-even Point

The level of production or sales at which total costs equal total revenue, meaning the company neither makes a profit nor incurs a loss.