Identify a True Statement About a Functional Strategy

question 47

Multiple Choice

Identify a true statement about a functional strategy.

• A)It refers to decisions made at the level of the strategic business unit about how to gain and sustain advantage.
• B)It refers to decisions about how to effectively implement the business unit strategy within functional areas.
• C)It refers to decisions about functional activities and strategic choices such as make versus buy.
• D)It refers to decisions that are made by senior corporate executives about what markets to compete in.

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Definitions:

Monopsony

Monopsony describes a market situation in which a single buyer substantially controls the market as the major purchaser of goods and services.

Competitive Price

The price of a product or service determined by the supply and demand within a competitive market, ensuring no significant profit or loss.

Marginal Value Curve

A graph that shows the additional value or utility gained from consuming one more unit of a good or service.

Expenditure Curves

Graphical representations that show how changes in income affect spending.