Which of the Following Is an Example of an Organization's

question 44

Multiple Choice

Which of the following is an example of an organization's strategic response to its external environment?

• A) Negotiating a new contract with the union
• B) Hiring a new CEO
• C) Implementing new plant safety standards
• D) Doing nothing in response to a competitor's new product
• E) Modifying the organization's culture

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Definitions:

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production volume.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent or salaries.

Break-Even Point

The financial point at which total costs equal total revenue, meaning there is no profit or loss.

JIT Inventory

Just-In-Time inventory is a management strategy that aligns raw-material orders from suppliers directly with production schedules to reduce storage costs.