Managers Who Think of Customers Existing to Buy the Firm's

question 36

Multiple Choice

Managers who think of customers existing to buy the firm's output rather than of firms existing to serve customers and-more broadly-the needs of society, have a

• A) marketing orientation.
• B) production orientation.
• C) selling orientation.
• D) dynamic orientation.
• E) customer orientation.

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Definitions:

Budget Slack

The practice of underestimating revenue or overestimating costs while preparing a budget to create a buffer, which can be used to handle unforeseen financial situations.

Planning

The process of setting goals, determining resources needed to achieve those goals, and outlining the steps necessary to accomplish them.

Loose Budgets

A financial plan that allows for higher spending and less stringent controls, often to accommodate for uncertainty or to encourage creativity and innovation.

Cash Budget

A financial plan that estimates incoming and outgoing cash flows over a specific period of time to ensure liquidity and solvency.