Adopting a Set of "Stretch" Financial and "Stretch" Strategic Objectives

question 86

Multiple Choice

Adopting a set of "stretch" financial and "stretch" strategic objectives:

• A) pushes the company to strive for lesser but adequate profitability levels,because the stretch objectives are considered unattainable.
• B) is a widely held method for creating a "scorecard" for moderating company performance.
• C) helps convert the mission statement into meaningful company values.
• D) challenges company personnel to execute the strategy with greater enthusiasm,proficiency,and understanding.
• E) is an effective tool for pushing the company to perform at its full potential and deliver the best possible results.

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Definitions:

Strategic Decisions

Long-term choices that affect the overall direction of a company, often related to pursuing competitive advantage and meeting organizational goals.

Operating Decisions

Decisions related to the day-to-day operations of a business, often concerning production, sales, and management of resources.

Financial Condition

The status of a company's finances, including its assets, liabilities, and equity, indicative of its ability to meet financial obligations.

Future Performance

Predictions or expectations regarding a company or investment's actions, achievements, or financial results in upcoming periods.