Changing a Strategy to Fit an Existing Culture

question 59

Multiple Choice

Changing a strategy to fit an existing culture

• A) is usually less effective than changing a firm's culture to fit a new strategy.
• B) is usually more effective than changing a firm's culture to fit a new strategy.
• C) is just as effective as changing a firm's culture to fit a new strategy.
• D) is always the best option.
• E) is never the right option.

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Definitions:

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Initial Value Method

A method of accounting in which an investment is initially recorded at its cost without adjusting for changes in the market value over time.

Net Income

The conclusive profit of a corporation once revenue has had taxes and expenses subtracted from it.

Common Stock

A type of equity security that represents ownership in a corporation, with holders possibly entitled to dividends and voting rights in some corporate matters.