The Stability Strategy Is Appropriate for All of the Following

question 46

Multiple Choice

The stability strategy is appropriate for all of the following circumstances EXCEPT

• A) useful in the short-run but can be dangerous if followed too long.
• B) most appropriate for reasonably successful corporations in a reasonably predictable environment.
• C) when a firm is continuing its current activities without a significant change in direction.
• D) appropriate when the industry is in decline.
• E) popular with small business owners who have found a niche and are happy with their success.

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Definitions:

Total Interest

The cumulative amount of interest paid or earned over the life of a loan or investment.

Invested

The exercise of designating funds with the anticipation of achieving financial gains or income.

Cinnamon Buns

Sweet baked goods made from dough containing cinnamon and sugar, often glazed or frosted.

Fund Raiser

An event or campaign organized to collect money for a specific cause or project.