When Compared to the Strategy Implementation Responsibilities of Senior Executives

question 74

Multiple Choice

When compared to the strategy implementation responsibilities of senior executives in U-form organizations, when implementing strategy, division general managers in M-form organizations

• A) tend to have to deal with less conflict.
• B) have to compete for external capital funding.
• C) tend to have to deal with substantially more conflict.
• D) must cooperate with other divisions to exploit corporate economies of scope.

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Definitions:

Salvage Value

The foreseen market valuation of an asset at the lifespan’s end.

Present Values

The now-value of a forthcoming financial amount or cash flow pattern, discounted at a fixed rate of return.

Net Present Value Method

A financial analysis tool used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

Annual Return

The percentage of increase or decrease in an investment's value over a one-year period.