A Useful Guideline in Designing Strategy-Facilitating Policies and Operating Procedures

question 44

Multiple Choice

A useful guideline in designing strategy-facilitating policies and operating procedures is

• A)to prescribe enough policies to give organizational members clear direction in implementing strategy and to place reasonable boundaries on their actions. This then empowers them to act within these boundaries in pursuit of company goals.
• B)that strictly enforced policies work better than loosely enforced policies.
• C)that more policies/procedures work better than fewer policies/procedures, and that strict enforcement always beats lax enforcement.
• D)to let individuals act in an empowered and self-directed way, subject only to the constraint that their actions and behavior be ethical and in step with the corporate culture.
• E)to prescribe enough policies and procedures that little is left to chance in performing value chain activities, and employees should have no leeway to do things in a manner that deviates from the company's best-practices standard.

---

Definitions:

Indirect Taxes

Taxes that are not directly paid by an individual but instead are levied on goods and services, such as sales tax or value-added tax.

Federal Government

The national government of a federal country, which holds the authority to govern the federation as a whole.

Proportional Tax

A tax system where the rate of taxation is fixed and does not change based on the income level, meaning everyone pays the same percentage of their income in taxes.

Excise Tax

A tax imposed on specific goods, services, or transactions, often included in the price of products like gasoline, tobacco, and alcohol.