The Relationship Between Strategy and Structure Can Be Best Described

question 14

Multiple Choice

The relationship between strategy and structure can be best described as

• A) strategy determines structure but structure does not determine strategy.
• B) structure determines strategy but strategy does not determine structure.
• C) strategy and structure influence each other.
• D) a third force determines both strategy and structure.

---

Definitions:

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Useful Life

The estimated lifespan of a fixed asset, during which it can be expected to contribute to company operations.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to account for the time value of money.

Annual Cash Inflows

The total amount of money, primarily from operating activities, investments, and financing, that enters a company within a year.