Functional-Area Strategies

question 56

Multiple Choice

Functional-area strategies

• A)concern the actions, approaches, and practices to be employed in managing particular functions within a business.
• B)specify what actions a company should take to resolve specific strategic issues and problems.
• C)are normally crafted by operating-level managers.
• D)are concerned with how to unify the firm's several different operating strategies into a cohesive whole.
• E)are normally crafted by the company's CEO and other senior executives.

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Definitions:

Short-Run Equilibrium

A situation in a market where demand equals supply, resulting in a stable price level, but which may not reflect long-term market dynamics.

Competitive Price-Taker

A rephrased scenario where businesses in competitive markets accept the prevailing market price as given because they have no power to influence it.

Profit

The financial gain realized when the revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.