A Plan That Indicates the Actions That Managers Intend to Take

question 14

Multiple Choice

A plan that indicates the actions that managers intend to take at departmental levels such as marketing and R&D in order to allow the organization to attain its goals is known as a:

• A)formulating strategy
• B)business-level strategy
• C)functional-level strategy
• D)corporate-level strategy
• E)top-level strategy

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Definitions:

Marginal Revenue

The additional income earned by selling one more unit of a good or service.

Normal Good

A product or service whose demand increases as consumers' income increases, typically reflecting higher purchasing power.

Profit-Maximizing

The strategy by which an organization sets the price and amount of output to achieve the maximum profitability.

Market Price

The current price at which an asset or service can be bought or sold.