Putting Together a Capable Top Management Team

question 16

Multiple Choice

Putting together a capable top management team

• A) should take top priority in building competitively valuable core competencies.
• B) is particularly important when the firm is pursuing unrelated diversification or making a number of new acquisitions in related businesses.
• C) is important in building an organization capable of proficient strategy execution, but is nearly always less crucial than doing a superior job of training and retraining employees.
• D) entails filling key managerial slots with smart people who are clear thinkers, good at figuring out what needs to be done, and skilled in "making it happen" and delivering good results.
• E) is particularly essential for executing a strategy to keep a company's costs lower than rivals and become the industry's low-cost leader.

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Definitions:

Business Overview

An outline that provides a high-level summary of a company's mission, operations, market position, and financial health.

Statement of Cash Flows

A Statement of Cash Flows is a financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Profit and Loss

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, indicating the net profit or loss.

Adjusted Trial Balance

A financial statement that displays all balances of accounts after adjusting entries have been made at the end of an accounting period, ensuring the ledger's accuracy.