A company's operating budget must

$(2\mathrm{.}5$pts$)$

Question $2-$ A company's operating budget must

be risk$-$averse, so as not to run the risk of inadvertently creating barriers to building the needed competencies and capabilities

be strategy$-$driven in order to amply fund the performance of key value chain activities

trim costs of key value chain activities to achieve cost efficiency in new strategic initiatives.

be employee$-$driven to gain commitment to strengthening the company's core competencies and competitive capabilities

follow traditional and time$-$tested methods of budgeting to support rapid adjustments in strategy.