Answer the following statements true (T) or false (F)
1. A defensive strategy is sometimes called a retrenchment strategy.
2. A development strategy is the common grand strategy that involves expansion.
3. A continuity strategy is the common grand strategy that involves little or no significant change.
4. Alaska Airline was profitable in 2011, prompting is to decide to remain a "smallish, specialized, regional airline in a world of global giants," which is an example of a stability strategy.
1. TRUE
A defensive strategy or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts.
2. FALSE
A growth strategy is a grand strategy that involves expansion, as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served.
3. FALSE
A stability strategy is a grand strategy that involves little or no significant change.
4. TRUE
A stability strategy is a grand strategy that involves little or no significant change. Example: Alaska Airlines, which enjoyed a profitable year in 2011, following a decade in which other carriers went bankrupt, decided to remain a "smallish, specialized, regional airline in a world of global giants," says one report, and to avoid cross-continental alliances and megamergers. Its stability strategy is simply to focus on lowering the cost per available seat mile.
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Recent accounting scandals suggest the need for care on the part of an independent auditor in accepting new clients. The independent auditor needs to know both the business of and the personnel employed by a prospective client. All other control
procedures are fruitless if a CPA chooses to serve an undesirable client. The damage suffered as a result of associating with an undesirable client can be irreparable. Discuss some key issues an independent auditor should consider in the client acceptance decision.
A tool which lists all of the operating functions to be performed, their characteristics, and their timing is a(n) _____
a. job analysis b. operations blueprint c. job description d. functional task blueprint
Once a Chapter 13 plan has been confirmed, it may:
a. be modified at the debtor's request but only if the trustee agrees. b. be modified only if all unsecured creditors agree. c. not be modified. d. be modified at the request of the debtor, the trustee, or a holder of an unsecured claim.