When Determining How to Allocate Scarce Resources, an Entrepreneur Should

question 7

Multiple Choice

When determining how to allocate scarce resources, an entrepreneur should:

• A) Focus on the company's key success factors
• B) Spread resources around to gain experience
• C) Focus exclusively on marketing
• D) Focus exclusively on technology
• E) None of the above

Understand the significance of forecasting and innovation in business strategy.

Grasp different Internet business models and their basis of competitive advantage.

Know the components of a SWOT analysis and its role in strategic management.

Understand the strategic management process and the importance of adaptability and communication in strategy implementation.

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Definitions:

Total Variable Costs

The sum of all costs that vary with the level of output or production.

Variable Costs

Costs that change in proportion to the level of production or business activity, such as raw materials and labor expenses.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Profit

The difference between total revenue and total cost.