A Company's Ability to Marshal Adequate Resources in Support of New

question 4

Multiple Choice

A company's ability to marshal adequate resources in support of new strategic initiatives and steer them to the appropriate organizational units is important to the strategy execution process because

• A) changes in strategy often require resource reallocation and,therefore,directing the proper amounts of resources to strategy-critical organizational units because they need the proper funding to carry out their part of the strategic plan effectively and efficiently.
• B) accurate budgets are the key to exercising tight financial controls over organizational units.
• C) tight budget control is management's most powerful tool for first-rate strategy execution.
• D) lean,carefully managed budgets protect the company's financial condition and eliminate wasteful use of cash.
• E) lean,strictly enforced budgets are management's best and most used means of getting organizational units to exercise fiscal discipline.

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Definitions:

Net Advantage to Leasing

A financial analysis metric that compares the costs of leasing to the costs of purchasing an asset, enabling businesses to determine the most cost-effective financing option.

CCA Class

refers to the Capital Cost Allowance Class, a categorization used in Canadian tax to determine the depreciation rate for tax purposes on assets.

Annual Depreciation

The method of allocating the cost of a tangible asset over its useful life on a yearly basis.

Cost of Debt

The effective rate that a company pays on its total debt, reflecting the expense of borrowing funds.