A Company's Strategy Is a "Work in Progress" and Evolves

question 36

Multiple Choice

A company's strategy is a "work in progress" and evolves over time because of:

• A) the importance of developing a fresh strategic plan every year (which also has the benefit of keeping employees from becoming bored with executing the same strategy year after year).
• B) the ongoing need to imitate the new strategic moves of the industry leaders.
• C) the need to make regular adjustments in the company's strategic vision.
• D) the ongoing need of company managers to react and respond to changing market and competitive conditions.
• E) the frequent need to modify key elements of the company's business model.

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Definitions:

Call Option

A financial contract granting the buyer the right, but not the obligation, to buy an underlying asset at a specified price within a certain period.

Exercise Price

The price at which an option holder can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Put Option

A financial agreement that provides the purchaser with the option to sell a certain quantity of an underlying asset at a predetermined price during a set timeframe, without being required to do so.