Which of the Following Statements Is True of Effective Strategic

question 55

Multiple Choice

Which of the following statements is true of effective strategic planning?

• A)Subordinates must persuade the management to accept their demands.
• B)Managers should challenge assumptions about the firm and the environment.
• C)Sound strategic planning is based on trial and error method of effective execution.
• D)Companies should refrain from establishing new strategies to improve productivity.

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Definitions:

Value

The economic, physical, or appraised valuation of a resource, merchandise, or assistance.

Term Loans

Loans from financial institutions that have a set repayment schedule and a fixed or floating interest rate.

Lockup Agreement

A contractual provision preventing insiders of a company from selling their shares for a certain period of time following an initial public offering (IPO).

Secondary Equity Offerings

Public sale of previously issued stock held by large investors or company insiders, often to raise additional capital.