A Firm's Managers Can Respond More Quickly and Effectively to Strategic

question 178

Multiple Choice

A firm's managers can respond more quickly and effectively to strategic issues if the strategies of its businesses are ________.

• A) vertical
• B) horizontal
• C) similar
• D) dissimilar

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Definitions:

Margin And Turnover

Financial metrics where margin refers to the difference between sales and the cost of goods sold, and turnover involves the rate at which inventory is sold or replaced.

Profit Center

A business segment whose manager has control over cost and revenue but has no control over investments in operating assets.

Revenue

The complete sum of revenue a business earns from sales of goods or provision of services within a designated timeframe.

Controlling Costs

The process of monitoring, managing, and regulating expenses to operate within the budget and maximize profitability.