All of the Following Are Guidelines for Effective Strategic Planning

question 57

Multiple Choice

All of the following are guidelines for effective strategic planning EXCEPT

• A) it should be simple and nonroutine.
• B) it should be a learning process for all managers and employees.
• C) it should be a paper process more than a people process.
• D) it should not disregard qualitative information.
• E) it should not be a formal system for control.

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Definitions:

Investment Opportunity

A financial investment or venture with the potential for yielding returns, involving the allocation of resources with the expectation of future financial gains.

Return On Investment

A measurement of the profitability of an investment, calculated by dividing net profit by the initial capital cost.

Average Operating Assets

The average value of those assets used for the normal operation of a company over a specific period, often used in return on investment calculations.

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross income.