Which of the Following Is Not a Major Reason for Developing

question 69

Multiple Choice

Which of the following is not a major reason for developing a business plan?

• A)The process helps pull the management team together.
• B)The completed plan is a vehicle for communicating managements vision to others.
• C)Planning enables management to defend itself against criticism from disgruntled stockholders.
• D)The finished plan serves as a roadmap for running the business.

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Definitions:

Annually Compounded

The process where interest is calculated on both the initial principal and the accumulated interest over the year.

Fair Market Value

A price established by competitive bidding among many buyers and sellers.

Compounded Monthly

Refers to the calculation of interest where the amount earned or paid is added to the principal balance each month, causing future interest calculations to be based on the increased balance.

Perpetuity

A type of annuity that receives an infinite series of identical cash flows.