Functional Strategies Are Those That Are

question 102

Multiple Choice

Functional strategies are those that are

• A)implemented by each functional area of an organization to support the business strategy.
• B)utilized by top management in developing the corporate structure and resource allocation of an organization.
• C)typically developed and implemented organization-wide by the board of directors.
• D)utilized as corporate benchmarks for evaluating corporate performance in relation to the organization's profitability.
• E)used to evaluate the organization's market position with regard to its closest competitors.

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Definitions:

Net Profit Margin Ratio

A profitability metric that calculates the percentage of revenue remaining as profit after all expenses are deducted from total sales.

Unit Selling Price

The price at which a single unit of a product or service is sold to customers.

Operating Expenses

Expenses incurred from a company's operational activities, not including the cost of goods sold, typically including selling, general, and administrative expenses.

Gross Profit

The difference between revenue and the cost of goods sold, showing the basic profitability of a company’s core operations.