Which of the Following Groups' Interests Are Given Greatest Importance

question 14

Multiple Choice

Which of the following groups' interests are given greatest importance when developing strategy in business organisations?

• A) Suppliers
• B) Shareholders
• C) Employees
• D) Customers

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Definitions:

Margin of Safety

This financial ratio measures the difference between actual or expected sales and the break-even point, indicating the cushion a company has before it incurs a loss.

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behavior are valid.

High-low Method

A way to estimate the cost-behavior formula that uses the highest and lowest levels of activity to determine fixed and variable costs.

Activity Index

A measure or indicator used to gauge activity levels within a particular domain, such as manufacturing or stock trading volume.