Between the Two Levels of Strategy, the Division of Responsibility

question 30

Multiple Choice

Between the two levels of strategy, the division of responsibility is consistent with the following principle:

• A)There is no principle but only limited rationality and trial-and-error processes to find the best articulation between these two responsibilities within the firm
• B)Corporate level strategy is the domain of top managers, while division managers are in charge of their business level strategies
• C)Corporate level strategy is the domain of the parent company, and the business level strategy is handled by the functional department managers
• D)Corporate and business level strategies are not any specific organizational level's responsibility because of the principle of maximum delegation and decentralization

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to determine investment worth.

Long-Term Liabilities

Financial obligations of a company that are due after more than one year.

Intangible Assets

Non-physical assets held by a company, such as patents, trademarks, copyrights, and goodwill, that add value to the business.

Cash Equivalents

Investments that are of a short-term nature, easily convertible into a specific amount of cash, and possess an initial maturity period of no more than three months, characterized by their high liquidity.