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.
- ADeciding the capital structure and the mix of debt and equity to fund expansionCorrect
- BSelecting channels such as dealers and e-commerce portals
- CChoosing between make-or-buy for components
- 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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