In Evaluating Strategic Options, What Is the Purpose of the 'Suitability

question 13

Multiple Choice

In evaluating strategic options, what is the purpose of the 'suitability' test?

• A) To determine if the strategic option is appropriate for the circumstances facing the organisation.
• B) To determine if the organisation has the resources needed to implement the strategy.
• C) To determine if the riskiness of the strategy matches what is acceptable to the organisation.
• D) To determine if the strategic option suits the management style of the organisation.

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Definitions:

Movability

The characteristic of an asset that allows it to be transferred or moved from one location to another.

Commission

A fee or percentage of a transaction value paid to an agent or company for facilitating a service, such as a sale or real estate transaction.

Negotiable

Capable of being discussed and modified in a transaction or agreement.

Bearer Instrument

A financial document not assigned to a specific holder, thus whoever holds the document has the right to cash or transfer it.