Which of the Following Questions Tests the Merits of the Firm's

question 6

Multiple Choice

Which of the following questions tests the merits of the firm's strategy and distinguishes it as a winning strategy?

• A) Is the company's strategy ethical and socially responsible and does it put enough emphasis on good product quality and good customer service?
• B) Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner?
• C) Is the strategy resulting in the development of additional competitive capabilities?
• D) Is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in better company performance?
• E) Does the strategy strike a good balance between maximizing shareholder wealth and maximizing customer satisfaction?

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Definitions:

Indirect Materials

Small items of material such as glue and nails that may be an integral part of a finished product, but whose costs cannot be easily or conveniently traced to it.

Flexible Budget

A budget that varies or adapts based on fluctuations in activity or volume levels.

Indirect Materials Cost

The cost of materials used in the production process that cannot be directly traced to the product, such as lubricants and cleaning supplies.

Machine-Hours

A measure of production output or used capacity based on the number of hours machines are operated.