In Companies Where Intellectual Capital Is Crucial to Good Strategy

question 64

Multiple Choice

In companies where intellectual capital is crucial to good strategy execution,which of the following is generally not among the practices that companies use to establish a talented knowledge base?

• A) Providing promising employees with challenging, interesting, and skill-stretching assignments and also rotating them through jobs that not only have great content but also span functional and geographic boundaries
• B) Expecting employees to take full responsibility for staying up to date, thereby minimizing the need to train or retrain employees
• C) Coaching average performers to improve their skills and capabilities, while weeding out underperformers and benchwarmers
• D) Encouraging employees to challenge existing ways of doing things, to be creative and innovative in proposing better ways of operating, and to push their ideas for new products or businesses
• E) Fostering a stimulating and engaging work environment such that employees will consider the company a great place to work

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Definitions:

Stock Repurchase

A company's buyback of its own shares from the marketplace, reducing the number of outstanding shares, which can increase the value of remaining shares.

Investment

The process of distributing funds or resources in anticipation of earning profits or income.

Profitable

A financial status indicating that the revenue of an entity is greater than its expenditures over a specified period, resulting in a net gain.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of a company.