When Deciding Which Form of Business Organization to Choose, Businesspersons

question 34

True/False

When deciding which form of business organization to choose, businesspersons normally consider only one factor.

Understand the impact of strategic planning on business performance and the importance of strategic management for all organizational members.

Identify various modes of strategy-making and the advantages of each.

Understand the concept of synergy in business strategy and its effects.

Appreciate the shift towards more inclusive and organic strategy-making processes in modern organizations.

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Definitions:

External Benefit

An uncompensated benefit that an individual or firm confers on others; also known as positive externality.

Higher Costs

Expenses that exceed the usual or expected amount, which can negatively impact profitability and pricing strategies.

Plastics Manufacturing

The industrial process of producing polymers and polymer-based items, used in various applications from packaging to automotive parts.

Negative Externality

An economic activity that imposes a negative effect on an unrelated third party, often leading to market failure if not addressed, like pollution.