Translating a Company's Strategy to Operational Terms

question 66

Multiple Choice

Translating a company's strategy to operational terms:

• A)is an analytical exercise.
• B)results in the benefit of having the end product of the balanced scorecard.
• C)often results in team building and employees' commitment to the new strategy.
• D)All of the above are correct.

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Definitions:

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the excess return over the firm's opportunity costs.

Purely Competitive Firm

A business that operates in a market with many buyers and sellers, where each has a negligible impact on price and product homogeneity prevails.

Unimpeded Entry

A situation in a market where there are no obstacles preventing new competitors from entering and competing.

MR = MC Rule

A principle in economics stating that profit maximization occurs when marginal revenue equals marginal cost.