Changing Circumstances and Ongoing Managerial Efforts to Improve the Strategy

question 43

Multiple Choice

Changing circumstances and ongoing managerial efforts to improve the strategy

• A)account for why a company's strategy evolves over time.
• B)explain why a company's strategic vision undergoes almost constant change.
• C)make it very difficult for a company to have concrete strategic objectives.
• D)make it very hard to know what a company's strategy really is.
• E)are consistent with a planned strategy approach.

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Definitions:

Market-Based Risk

The risk of losses stemming from factors that affect the overall market, including fluctuations in interest rates, stock prices, and currencies.

Investment Risk

The possibility of losing some or all of the original investment, often measured by the volatility of returns.

Overconfidence

A cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy, often leading to riskier financial decisions.

Affect Heuristic

A mental shortcut that influences the way people make decisions based on their emotions and feelings.