If There Is Little Fit Between a Strategic Alternative Under

question 19

Multiple Choice

If there is little fit between a strategic alternative under consideration and the corporate culture, which of the following is one of management's options to consider?

• A) Take a chance on ignoring the culture by implementing the strategic alternative.
• B) Manage around the culture and change the implementation plan.
• C) Try to change the culture to fit the strategy.
• D) Change the strategy to fit the culture.
• E) all of the above

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Definitions:

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, often expressed as a percentage.

Dividend Policies

The policies and guidelines a company follows in deciding how much of its earnings it will pay out to shareholders as dividends.

Bird-In-The Hand

A theory suggesting that investors prefer dividends from a stock to potential capital gains because of the immediate certainty of receiving payouts.

Dividend Reinvestment Plans

Programs that allow shareholders to automatically reinvest their cash dividends into additional shares of the issuing company.