A Competitive Environment Means That Organizations Will Be

question 11

Multiple Choice

A competitive environment means that organizations will be

• A)producing increasingly high-volume, low-variety products and services.
• B)focused internally on efficiency.
• C)managing cause and effect linkages to customer satisfaction.
• D)viewing their actions independent of competitors, suppliers, and customers.

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Definitions:

Cost of Capital

The earnings rate a firm must reach through its investments to uphold its market worth and secure financing.

Terminal Value

The estimated value of a business or an investment at the end of a specific period, taking into account expected future cash flows.

Cash Flows

Cash flows denote the overall volume of cash and cash-equivalents moving in and out of a company.

Sunk Costs

Expenses that have already been incurred and cannot be recovered, and should not affect future decision-making.