By Pursuing Maintenance of Scope Strategies, Management Believes Which of the Following

question 36

Multiple Choice

By pursuing maintenance of scope strategies, management believes which of the following?

• A)Investments in maintaining infrastructure will provide a competitive advantage in a stable industry.
• B)Short-term gains in profitability and market share can be achieved by selectively eliminating product and service lines.
• C)The past strategy has been appropriate and few changes are required in the target markets or the organization's products/services.
• D)Maintaining a stable organizational structure will amplify the organization's ability to recognize emerging market opportunities.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in net profit or loss.

Affect Inventories

Influences on the quantity, value, or type of products a business holds for sale, resulting from factors like demand fluctuations and supply chain issues.

Expense Recognition Principle

An accounting guideline that expenses should be recognized in the period in which they are incurred, regardless of when the payment is made.

Cost Of Goods Sold

Direct expenses involved in producing goods for sale by a company, covering both materials and workforce costs.