Strategic Intent

question 7

Multiple Choice

Strategic intent:

• A)Impacts performance through its influence on capability development
• B)Often emerges from a business leader and his/her passion and commitment
• C)Emerges from benchmarking a firm's rivals
• D)Answers a and b

---

Definitions:

Monopolistic Competition

A market structure characterized by the presence of several firms that sell similar, but slightly differentiated, products and services where each has some control over its prices.

Zero Economic Profits

A situation in perfectly competitive markets where firms earn just enough revenue to cover their total operating costs, leaving no supernormal profit.

Positive Economic Profits

The situation in which a firm's total revenues exceed its total costs, including both explicit and implicit costs, signaling that the firm is doing better than the next best alternative.

Profit

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.