When a Firm Analyzes Its Objectives and Performance, Availability of Resources

question 13

Multiple Choice

When a firm analyzes its objectives and performance, availability of resources, structural characteristics, and organizational culture, the firm is most likely examining its:

• A) internal environment.
• B) external environment.
• C) mission statement.
• D) competitive strategy.
• E) strategic environment.

Understand the concept and implications of decentralization in organizations.

Recognize the characteristics and responsibilities of different types of responsibility centers within businesses.

Identify and explain the benefits and disadvantages of decentralization.

Understand the concept of a franchise and its typical fee structures.

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Definitions:

Excess Supply

A situation where the quantity of a good supplied is greater than the quantity demanded at a given price.

Demand Shifts

Refers to the change in the quantity of a product that consumers are willing and able to buy at different prices, caused by factors other than the price of the product itself.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market equilibrium price.