What Term Is Used to Describe the Process Involving Revising

question 24

Multiple Choice

What term is used to describe the process involving revising existing goals and adopting new goals?

• A) Strategy formulation
• B) Strategic planning
• C) Strategy implementation
• D) Capital budgeting

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Definitions:

Undistributed Profits

Profits earned by a company that are not paid out as dividends to shareholders but are retained within the company for reinvestment.

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or market.

Inverted-U Theory

A hypothesis suggesting that a variable can produce effects that increase to a point after which further increases in the variable lead to a decline in the effect.

Industry Concentration Ratios

Statistical measures that express the extent to which a small number of firms dominate the total output, sales, or capacity in an industry.