Final answer:
A firm's functional strategies outline the key activities that each department will execute to support the company's competitive objectives. The correct answer is option c.
Step-by-step explanation:
A firm's functional strategies are pivotal for defining how the company will achieve its competitive objectives. These strategies clarify the broad activities that each department within the company will undertake to aid in reaching the firm's overarching competitive goals. Functional strategies encompass decisions related to production, which involves combining inputs such as labor, capital, land, and materials to produce valuable outputs, thus creating value through various processes including manufacturing, transportation, distribution, wholesale, and retail sales.
Various stakeholders, including bondholders and shareholders, rely on the transparency of the firm's products, revenues, costs, and profits, which reduces the need for personal knowledge of the individual managers as the company becomes established and its strategies lead to potential profitability. This broader dissemination of information allows those outside investors, who might not know the managers personally, to feel more confident about providing financial capital to the company.