SpandoCorp Is a Diversified Firm That Makes Industrial, Military and Consumer

question 62

Multiple Choice

SpandoCorp is a diversified firm that makes industrial, military and consumer products from Spandex. SpandoCorp manages each of the businesses that it operates in as a separate division and treats each as a true profit-and-loss center. In this organization, Grace McKenna is responsible for deciding which set of businesses SpandoCorp will operate in and for encouraging behavior that is consistent with this strategy, Wells Tucker provides information to McKenna about the internal and external environments that she uses in her decision making, and Kelly Rae is one of the individuals who is responsible for evaluating the firm's decision making to ensure that it is consistent with the interests of equity holders.
-If Todd Heinz were the chief operating officer for SpandoCorp,his responsibilities would include

• A)supervision of the board of directors in its monitoring role.
• B)strategy implementation.
• C)strategy formulation.
• D)strategy control.

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Definitions:

Beneficiary

A legal term referring to an individual or entity entitled to receive benefits or assets under the terms and provisions of a will, trust, insurance policy, or other contract.

Ownership Interest

A person's or entity's legal rights and claims to an asset, reflecting the degree of ownership and entitlement to the benefits that come with the asset.

Property Insurance Policy

A policy that provides financial reimbursement to the owner or renter of a structure and its contents in case of damage or theft.

Covered Peril

Refers to a specific risk or cause of loss protected against in an insurance policy.