What Argument Against Formal Planning Indicates That Confidence in a Plan

question 112

Multiple Choice

What argument against formal planning indicates that confidence in a plan is dangerous?

• A) Plans cannot be developed for a dynamic environment.
• B) Formal planning reinforces success, which may lead to failure.
• C) Just planning isn't enough.
• D) Planning may create rigidity.

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Definitions:

Future Cash Flows

Estimated amounts of money expected to be received or paid out over future periods.

Cash Payback Method

A financial analysis method used to determine the time needed for an investment to generate cash flows sufficient to recover the initial investment cost.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Capital Rationing

A strategy or decision-making process that involves allocating and limiting investment funds to various projects to maximize a company's value.