Which of the Following Is the Main Purpose of a Strategic

question 45

Multiple Choice

Which of the following is the main purpose of a strategic management process?

• A)Ensuring that all employees have managers and supervisors to lead their teams
• B)Creating an organization that functions systematically according to its vision, mission, and goals
• C)Creating a high-level plan that can be implemented without fierce competition and undue risk
• D)Specifying a high-level plan that an organization will employ to achieve competitive advantage

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity or production volume.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums.

Operating Income

A measure of a company's profit generated from its core business operations, excluding deductions of interest and tax.

Operating Leverage

An indicator of the extent to which increases in sales revenue result in an increase in operating profit, showing the level of fixed expenses within a business's cost composition.