Which of the Following Is True of the Financial Plan

question 3

Multiple Choice

Which of the following is true of the financial plan in a reasonably well managed company?

• A)The plan should ideally follow the aggressive optimism strategy.
• B)The plan should establish measurable goals which result in bonus compensation if achieved.
• C)Its stretch goals serve as targets toward which the organization strives and always achieves.
• D)Its stretch goal faces a risk of overstating achievable performance because of the bottom-up phenomenon.

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Definitions:

Unbiased Conviction

A firm belief or opinion formed without prejudice or favoritism towards any side.

Industrial Products

Products sold primarily for use in producing other products.

Customer Service

The support and assistance provided by a company to the users of its products or services before, during, and after a purchase.

Product Guarantees

Promises made by the seller or manufacturer about the quality or lifespan of a product, providing assurance to the buyer.