From a Strategy-Implementing/strategy-Executing Perspective,budget Allocations Should

question 61

Multiple Choice

From a strategy-implementing/strategy-executing perspective,budget allocations should

• A) primarily be based on the number of new strategic initiatives being implemented in each department.
• B) be based on the number of people employed in each of the divisions.
• C) be strategy-driven and based primarily on how much each organizational unit needs to carry out its piece of the strategic plan efficiently and effectively.
• D) be linked to the costs of performing value chain activities as determined by benchmarking against best-in-industry competitors.
• E) depend on how much stretch there is in each department's objectives and what additional resources are needed to help reach these performance targets.

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Definitions:

Commercial Insurance

is a type of insurance designed to protect businesses from losses due to events that may occur during the normal course of business, such as property damage or liability claims.

Business Risk

The potential for losses or less-than-expected returns stemming from the economic, industry, or company-specific factors.

Property Insurance

Insurance that protects property from loss or damages.

Loss Or Damage

Refers to the negative impact, destruction, or impairment of value, function, or condition of property or goods.