A Company's Ability to Marshal Adequate Resources in Support of New

question 10

Multiple Choice

A company's ability to marshal adequate resources in support of new strategic initiatives and steer them to the appropriate organizational units is important to the strategy execution process because

• A)changes in strategy often require resource reallocation, and organizational units need the proper funding to carry out their part of the strategic plan effectively and efficiently.
• B)accurate budgets are the key to exercising tight financial controls over what organization units can and cannot do in carrying out management's directives to execute the chosen strategy proficiently.
• C)tight budget control is management's most powerful tool for first-rate strategy execution.
• D)lean, carefully managed budgets protect the company's financial condition and eliminate the wasteful use of cash.
• E)lean, strictly enforced budgets are management's best and most used means of getting organizational units to exercise the fiscal discipline needed to execute the chosen strategy in a cost-efficient manner.

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Definitions:

Coupon Interest Rate

The annual interest rate paid on a bond or fixed-income security, expressed as a percentage of the face value.

Carrying Amount

Also known as book value, this represents the value of an asset as recorded in the company's books, accounting for depreciation and amortization.

Face Value

The nominal value or original monetary value printed on a security or currency note.

Bonds Payable

Long-term liabilities representing money a company owes to bondholders, to be repaid at some future date plus interest.