When Planning Corporate Strategy, the Most Challenging Task for Corporate

question 79

Multiple Choice

When planning corporate strategy, the most challenging task for corporate headquarters is to:

• A)Build a strategic plan quickly that achieves all the corporate goals
• B)Resolve conflicts among divisions
• C)Encourage divisional initiative and strategic proposals
• D)Allow divisions to have sufficient initiative and decision making powers to choose and plan their own goals and strategies, while achieving all the common corporate goals

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning no one can be effectively excluded from use and use by one does not reduce availability to others.

Optimal Quantity

The amount of a good or service that yields the highest net benefit to producers and consumers, considering costs and benefits.

Marginal Benefit

The surplus happiness or utility experienced from using an extra unit of any good or service.

Public Good

A public good is a good that is non-excludable and non-rivalrous, meaning it can be used by everyone freely without depleting its availability to others.