When Using the _____ Approach to Strategic Planning,the Products Sold

question 21

Multiple Choice

When using the _____ approach to strategic planning,the products sold by multinational corporations often have a large portion of their value added in the downstream activities of the value chain.

• A) political imperative
• B) cost imperative
• C) quality imperative
• D) economic imperative

Differentiate between express, implied, unilateral, and bilateral contracts through examples.

Identify the elements of consideration in contract law and its significance in contract formation.

Recognize contracts implied in law and the concept of quasi-contracts.

Understand different types of obligations and contracts, including quasi-contractual obligations.

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Definitions:

Break-Even Quantity

Break-even quantity is the number of units that must be sold for total revenues to equal total costs, at which point the company makes no profit but also incurs no loss.

Discounted Payback

A capital budgeting technique that calculates the amount of time needed to recoup an investment based on the present value of its cash flows, accounting for the time value of money.

Variable Cost

Overheads that see variation directly aligned with output quantities.

Operating Leverage

The degree to which a company can increase its profits by increasing sales, highlighting the fixed versus variable costs structure.