In Crafting a Company's Strategy, Managers

question 16

Multiple Choice

In crafting a company's strategy, managers

• A)face the biggest challenge of how closely to replicate strategies of successful companies in the industry.
• B)have comparatively little freedom in choosing the "hows" of strategy.
• C)are wise not to decide on concrete courses of action in order to preserve maximum strategic flexibility.
• D)need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals.
• E)are well-advised to be risk-averse and develop a "conservative" strategy-"dare-to-be-different" strategies are rarely successful.

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Definitions:

Book of Original Entry

A preliminary accounting record where transactions are first recorded; also known as a journal.

Chart of Accounts

An organized list of all the accounts used in a company's general ledger, categorized into assets, liabilities, equity, revenues, and expenses.

Ledger

A comprehensive collection of accounts where financial transactions are recorded, categorized, and summarized; an essential part of the accounting system.

Accounting Information System

A system used by businesses to collect, store, manage, process, retrieve, and report financial data for the purpose of informed decision-making.