How Can a Company Create 'Strategic Flexibility

question 71

Multiple Choice

How can a company create 'strategic flexibility'?

• A)encourage employees to be open about disclosing negative information
• B)know what has happened with strategies in the past
• C)get old ideas from senior employees
• D)never make mistakes
• E)insulate the organisation from the effects of environmental changes

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Definitions:

Investing Activities

Financial activities related to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.

Financing Activities

Financial transactions primarily involved with funding the company and its capital structure, including issuing debt, paying off debt, and equity transactions.

Issuing Debt

The process in which a corporation or governmental entity raises funds by selling bonds, bills, or notes to investors with a promise to pay back the principal along with interest on a specified date.

Acquiring Investments

The process of allocating resources, usually money, to purchase financial assets in the hope of generating income or capital appreciation.