Multiple Choice
Which of the following is a main advantage of organizing a firm as a corporation?
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1. Introduction to Accounting
Business Organization
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Which of the following best describes a company's strategy in the context of business organization?
A
A plan outlining how the company will achieve its long-term goals and gain a competitive advantage.
B
A record of the company's historical transactions.
C
A summary of the company's financial statements.
D
A list of the company's daily operational tasks.
Verified step by step guidance1
Understand the concept of a company's strategy: A strategy is a comprehensive plan that outlines how a company intends to achieve its long-term goals and gain a competitive advantage in the market.
Eliminate options that do not align with the definition of strategy. For example, 'A record of the company's historical transactions' refers to bookkeeping, not strategy.
Evaluate the option 'A summary of the company's financial statements.' This pertains to financial reporting, not strategic planning.
Consider the option 'A list of the company's daily operational tasks.' This describes operational management, not a strategic plan.
Identify the correct option: 'A plan outlining how the company will achieve its long-term goals and gain a competitive advantage,' as this aligns with the definition of a company's strategy.
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