From a Strategy-Implementing/strategy-Executing Perspective, Operating Budget Allocations Should

question 37

Multiple Choice

From a strategy-implementing/strategy-executing perspective, operating budget allocations should

• A)primarily be based on the number of new strategic initiatives being implemented in each operating department.
• B)be based on the number of people employed in each of the divisions.
• C)be strategy-driven and based on how much each organizational unit needs to carry out its piece of the strategic plan efficiently and effectively.
• D)be linked to the costs of performing value chain activities as determined by benchmarking against best-in-industry competitors.
• E)depend on how much stretch there is in each department's objectives and what additional resources are needed to help reach these performance targets.

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Definitions:

Discount

The reduction applied to the nominal price of goods, services, or securities, often to accelerate sales or investment.

Common Stock

A type of security that represents ownership in a corporation, entitling the holder to vote at shareholder meetings and to receive dividends.

Noncompensatory

Refers to plans or benefits that do not provide compensation or remuneration, typically used in contexts related to employee benefit plans that do not compensate for services performed.

Stock Option Plan

A program established by a company that grants employees the right to purchase the company's stock at a predetermined price after a certain period of time.