Good Strategy Combined with Good Strategy Execution

question 45

Multiple Choice

Good strategy combined with good strategy execution

• A)offers a surefire guarantee for avoiding periods of weak financial performance.
• B)is the best sign that a company is a true industry leader.
• C)is a more important management function than forming a strategic vision combined with setting objectives.
• D)is the clearest indicator of good management.
• E)signals that a company has the best business model in a market.

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Definitions:

Financial Break-Even

The point at which total revenue exactly covers total costs, leaving no profit or loss.

Financial Basis

The underlying value or cost used for tax purposes, to calculate capital gain or loss upon the sale of an asset, including adjustments for improvements, depreciation, and costs of sale.

Pay Back

The process of returning or repaying borrowed funds, especially the principle amount of a loan.

Accounting Break-Even

The point at which total costs and total revenues are exactly equal, resulting in neither profit nor loss.