In Order for an Organization to Be Successful Over the Long

question 15

Multiple Choice

In order for an organization to be successful over the long term,managers need to have a ___________ as to where and how to compete in the markets in which they intend to serve.

• A) strategic direction
• B) business strategy
• C) game plan
• D) business goal
• E) business mission

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Definitions:

Pre-Tax Basis

An evaluation or measure made before taxes are deducted.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, used for reinvestment in the business or to pay down debt.

After-Tax Cost

The actual cost of an investment or loan after taking into account the effects of taxation on its returns or costs.