Which of the following is an example of a financial strategy?

Prepare for the PGA Level 1 Facility Management Exam with our engaging quiz. Use flashcards and multiple choice questions to enhance your understanding. Gain insights and ensure you're ready for exam day!

Borrowing money is an example of a financial strategy because it directly involves the management of a facility's funds and resources. When a facility borrows money, it is making a strategic decision centered on financing that can affect its budget, cash flow, and overall financial health. This strategy can be used for various purposes, such as investing in improvements, covering operational costs, or managing unexpected expenses.

In contrast, increasing brand loyalty, enhancing customer service, and improving product quality focus more on marketing and operational strategies that aim to boost customer satisfaction and business performance rather than directly addressing financial management. While these aspects are critical for a facility's success, they do not represent a financial strategy in the same clear way that borrowing money does, as they do not involve the direct allocation or management of financial resources.

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