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:

Causes

Factors or events that bring about an effect or a change, grounding the reasoning in various contexts such as scientific, social, or economic.

Consequences

The results or outcomes that naturally follow from specific actions or decisions.

Environmental Quality

The condition of the natural environment and its ability to sustain life, maintain ecological processes, and support biodiversity.

Wealthy Countries

Wealthy countries are nations with a high level of income per capita, advanced infrastructure, and a strong standard of living.