A Company's Operating Budget Must

question 68

Multiple Choice

A company's operating budget must

• A)be strategy-driven in order to amply fund the performance of key value chain activities.
• B)be risk-averse, so as not to run the risk of inadvertently creating barriers to building the needed competencies and capabilities.
• C)be employee-driven to gain commitment to strengthening the company's core competencies and competitive capabilities.
• D)trim costs of key value chain activities to achieve cost efficiency in new strategic initiatives.
• E)follow traditional and time-tested methods of budgeting to support rapid adjustments in strategy.

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Definitions:

Consolidated Buildings

Buildings and related assets that are grouped together on a company's balance sheet after it has combined its financial statements with those of its subsidiaries.

Business Combination

A transaction or other event in which an acquirer gains control of one or more businesses, often involving a merger or acquisition.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Fair Value

The estimated market price of an asset or liability, reflecting current market conditions.