Corporate-Level Strategy Addresses Two Related Issues

question 59

Multiple Choice

Corporate-level strategy addresses two related issues

• A) how to compete in a given business; the application of technology.
• B) what businesses to compete in; how these businesses can achieve synergy.
• C) how to integrate primary activities; increase shareholder wealth.
• D) how to improve a firm's infrastructure; how to maintain ethical behaviour.

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Definitions:

Total Cost

The aggregate amount of expenses incurred by a business in producing goods or services, including both fixed and variable costs.

Economic Profit

The variance between gross receipts and all outlays, including both tangible and intangible costs.

Accounting Profit

The total revenue of a business minus the explicit costs of operating, not including opportunity costs.

Implicit Costs

The opportunity costs that are not directly paid out but represent the loss of potential income from using resources in a certain way.