The Purpose of Annual Plan Control Is To

question 43

Multiple Choice

The purpose of annual plan control is to:

• A)examine the general direction the company is pursuing.
• B)​examine how well resources have been utilized in each element of the marketing strategy.
• C)​examine where the company is making or losing money.
• D)examine whether the planned performance standards are being achieved.
• E)​examine the general directions of industry demand.

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Definitions:

Hurdle Rate

The minimum rate of return on an investment required by an investor or manager, used to assess its viability.

Cost Of Capital

The rate of return that a business must achieve to meet the expectations of its investors and creditors, representing the opportunity cost of investing capital in a specific business.

IRR

The Internal Rate of Return; a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Salvage Value

The foreseen market valuation of an asset at the lifespan’s end.