An Organization Strives for Internal Efficiency with A(n) __________ Strategy

question 184

Multiple Choice

An organization strives for internal efficiency with a(n) __________ strategy.

• A) integration
• B) diversification
• C) differentiation
• D) defensive
• E) cost leadership

---

Definitions:

Actively Managed

Refers to investment funds where portfolio managers make specific investments with the goal of outperforming an investment benchmark index.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are managed by professional investment managers.

Index Funds

Index Funds are mutual funds or exchange-traded funds (ETFs) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments.

Efficient Markets Hypothesis

The Efficient Markets Hypothesis suggests that asset prices in financial markets fully reflect all available information at any given time, making it impossible to consistently achieve higher returns than the overall market.