Organizational Strategy Should Be Determined Without Considering the Realities of Functional

question 31

True/False

Organizational strategy should be determined without considering the realities of functional area strengths and weaknesses since they can be changed to meet our strategy.

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Definitions:

Required Rate Of Return

The lowest annual gain percentage that persuades individuals or firms to allocate resources to a particular security or project.

Market Rate Of Return

The average rate of return anticipated by investors in a particular market, benchmarked against existing interest rates or historical returns.

Dividend

A portion of a company's profits allocated by the board of directors to its shareholders.

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock, typically with fixed dividends and without voting rights.