The Faster a Company's Business Environment Is Changing Only Makes

question 61

Multiple Choice

The faster a company's business environment is changing only makes it imperative for strategy makers to:

• A) pay attention to early warnings of future change and be willing to experiment to establish a market position in the future.
• B) stay abreast of the changes by developing a comprehensive knowledge management system to monitor the environment.
• C) establish controls to ensure the impact of any changes is monitored appropriately and ensure the internal environment is maintained.
• D) align their decision-making with organizational unit objectives.
• E) to develop financial objectives that reflect the implications of change and that meet the internal environment's functional focus.

---

Definitions:

Gross Profit

The financial metric representing the difference between sales revenue and the cost of goods sold (COGS), before deducting overhead, payroll, taxes, and interest payments.

Ending Inventory

Merchandise value set for sale at an accounting period's end.

Safeguarding Inventory

Safeguarding inventory involves implementing security measures and inventory management practices to protect goods from theft, damage, or loss.

Inventory Control

A management system that oversees the ordering, storage, and use of components that a company will use in the production of the items it will sell as well as the finished products the company will sell.