A Change from Low-Cost Strategy to a Strategy of Growth

question 20

Multiple Choice

A change from low-cost strategy to a strategy of growth through acquisitions typically requires:

• A)more directive leadership when managing current employees
• B)less need for training for work supervisors
• C)more training for current employees
• D)more automated work processes
• E)taller organizational hierarchy

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Definitions:

Loss Carry-Forward

A tax provision allowing companies to use their current year's net operating losses to reduce taxable income in future years.

Capital Losses

Financial losses incurred when the selling price of an asset is less than the purchase price.

Capital Gains

The profit from the sale of an asset or investment when the selling price exceeds its purchase price.

Quick Conversion

A process or strategy designed to rapidly convert assets or inventory into cash.