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Tactical Planning Deals with Setting Long-Range Goals, While Strategic Planning

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Tactical planning deals with setting long-range goals, while strategic planning develops the specific strategies needed to achieve the organization's operational goals.


Definitions:

Pretax Financial Income

The amount of income a company has earned before any taxes have been deducted, often used for internal reporting.

Taxable Income

The amount of an individual's or entity's income used to determine how much tax is owed, calculated by deducting allowable deductions from gross income.

Permanent Difference

A discrepancy between taxable income and accounting income that will not reverse over time, affecting the tax and financial reporting separately.

Life Insurance Proceeds

The money that beneficiaries receive from a life insurance policy upon the policyholder's death, typically exempt from income tax.

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