Why Is Planning Considered an Important Process for Managers

question 71

Multiple Choice

Why is planning considered an important process for managers?

• A)It gives a sense of direction and purpose.
• B)It ensures only top-level managers make decisions.
• C)It creates a time horizon for different planning levels.
• D)It identifies which markets to enter or avoid.

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Definitions:

Intra-entity Gross Profit

Profits recognized from transactions that occur within the same company, not yet realized by the external market.

Income Tax Liability

The total amount of taxes owed by an individual or a business entity to the federal, state, or local government based on income.

Operating Income

Income generated from the core business operations of a company, excluding income from investments and expenses not related to the primary business activities.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary depending on the income or profit levels.