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CS Professional · Strategic Management and Corporate Finance · Business Policy and Formulation of Functional Strategy

Which of the following is an example of a financial functional strategy rather than a marketing or production strategy?

Deciding the capital structure and the debt-equity mix for funding expansion is a financial functional strategy, because it concerns sourcing and managing funds. Channel selection belongs to marketing, make-or-buy to production, and appraisal systems to human resources.

  1. ADeciding the capital structure and the mix of debt and equity to fund expansionCorrect
  2. BSelecting channels such as dealers and e-commerce portals
  3. CChoosing between make-or-buy for components
  4. DDesigning a performance appraisal system for employees

Explanation

Capital structure and sourcing of funds fall under the finance function. Channel selection is marketing, make-or-buy is production/operations, and appraisal design is HR.

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