Good Strategy Execution

question 1

Multiple Choice

Good strategy execution

• A) requires a team effort with managers who have strategy-executing responsibility and making all employees active participants in the execution process.
• B) requires getting things done effectively and efficiently.
• C) allows companywide performance measures to be met.
• D) requires middle and lower-level managers to ensure strategy-critical activities are successfully implemented.
• E) All of these choices are correct.

---

Definitions:

Financial Leverage

It refers to the use of borrowed funds by a company to finance its investments, aiming to increase the returns on equity.

M&M Proposition I

A theory in corporate finance stating that in a perfect market, the value of a firm is unaffected by how it is financed, whether through debt or equity.

Equity Risk

The risk of loss associated with fluctuations in the equity market.