Which of the Following Correctly States the Business Plan Types

question 25

Multiple Choice

Which of the following correctly states the business plan types that contain the lowest and greatest proportions of financial detail?

• A)Lowest - strategic planning; greatest - budgeting
• B)Lowest - forecasting; greatest - operational planning
• C)Lowest - strategic planning; greatest - forecasting
• D)Lowest - operational planning; greatest - budgeting
• E)Lowest - forecasting; greatest - budgeting

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Definitions:

Asset Lives

The estimated useful life of an asset, determining over what period the asset's cost will be depreciated or amortized.

Compensating Balances

Minimum account balances that a borrower must maintain as part of a lending agreement, often used to offset a portion of the bank's cost in providing the loan.

Effective Interest Rate

The actual interest rate earned or paid on an investment, loan, or financial product, taking into account the effects of compounding over a given period.

Loan

A financial agreement where a borrower receives a specific amount of money from a lender and is obligated to repay it back with interest over a predetermined period.