A Company's Strategy Evolves from One Version to the Next

question 4

Multiple Choice

A company's strategy evolves from one version to the next because of

• A) changing management conclusions about which of several appealing strategy alternatives is actually best.
• B) the proactive efforts of company managers to improve this or that aspect of the strategy, a need to respond to changing customer requirements and expectations, and a need to react to fresh strategic maneuvers on the part of rival firms.
• C) ongoing turnover in the managerial and executive ranks (new managers often decide to shift to a different strategy).
• D) pressures from shareholders to boost profit margins and pay higher dividends.
• E) the importance of keeping the company's business model fresh and up-to-date.

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Definitions:

Accounts Receivable

Represents the money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

5 C's of Credit

The five key elements a lender analyzes when determining a borrower's creditworthiness: character, capacity, capital, collateral, and conditions.

Capital

Financial assets or the financial value of assets, such as cash and goods, working to create wealth through investment or production.

Operating Cash Flows

Cash generated from a company's normal business operations, indicating its ability to generate revenue.