Maintaining Options That Create Strategic Flexibility Can Be Thought of as a Third

question 21

True/False

Maintaining options that create strategic flexibility can be thought of as a third generic business level strategy.

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Definitions:

Saving Benefits

The advantages gained from setting aside income or resources for future use, including accruing interest, financial security, and preparedness for emergencies.

Substitution Effect

This refers to the economic theory that as prices rise or fall, consumers will replace more expensive items with less costly alternatives.

Income Effect

Refers to the change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Tax Rate

The rate at which taxes are applied to an individual or a corporation’s income.