Managers Also Need to Take into Consideration the Macroeconomic Factors

question 78

True/False

Managers also need to take into consideration the macroeconomic factors that will have near-term and long-term effects on the success of their strategy.

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Definitions:

Financial Capital

The funds that corporations and individuals use to invest in and finance new business ventures and operations.

Real Capital

Physical assets that are used in the production of goods and services, such as machinery, buildings, and equipment.

Vicious Circle

A complex sequence of negative events or conditions that reinforce each other, leading to a deteriorating situation or a series of worsening cycles.

Infrastructure Problem

Issues or challenges related to the basic facilities, services, and installations needed for the functioning of a community or society, like roads, bridges, and power supplies.