The Management Function That Requires Managers to Look Ahead and Establish

question 1

Multiple Choice

The management function that requires managers to look ahead and establish objectives is

• A) controlling.
• B) directing.
• C) planning.
• D) constraining.

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Definitions:

Elasticity Of Demand

An indicator of the level of change in consumer demand for a product based on fluctuations in its price.

Normal Profit

The minimum level of profit needed for a company to remain competitive in the market; it occurs when total revenues are equal to total costs, including opportunity costs.

Monopolistically Competitive Firm

A company operating in a market structure characterized by many firms selling products that are substitutes but different enough that each has a degree of market power.

Long-Run Equilibrium

A condition in which supply and demand are balanced, all inputs can be varied by firms, and there is no incentive for market entry or exit.