Functional Strategies Are Those That Are

question 102

Multiple Choice

Functional strategies are those that are

• A)implemented by each functional area of an organization to support the business strategy.
• B)utilized by top management in developing the corporate structure and resource allocation of an organization.
• C)typically developed and implemented organization-wide by the board of directors.
• D)utilized as corporate benchmarks for evaluating corporate performance in relation to the organization's profitability.
• E)used to evaluate the organization's market position with regard to its closest competitors.

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Definitions:

Interest Tax Savings

The reduction in income tax that results from the deductibility of interest payments on certain types of loans, such as mortgages.

Discount Rate

The interest rate used to discount future cash flows of a project or investment to determine its present value.

Defensive Merger

A strategy where a company merges with or acquires another company to protect itself against potential competitors or hostile takeovers.

Hostile Takeover

An acquisition attempt by a company or individual against the target company's wishes.