Which of the Following Statements Is True of Effective Strategic

question 55

Multiple Choice

Which of the following statements is true of effective strategic planning?

• A)Subordinates must persuade the management to accept their demands.
• B)Managers should challenge assumptions about the firm and the environment.
• C)Sound strategic planning is based on trial and error method of effective execution.
• D)Companies should refrain from establishing new strategies to improve productivity.

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Definitions:

Effective-interest Method

A method of amortizing bond discounts or premiums that reflects the constant rate of interest over the life of the bond with respect to its carrying value at the beginning of each interest period.

Interest Expense

Represents the cost incurred by an entity for borrowed funds, reflecting the interest payments on debt obligations during a reporting period.

Present Value Factors

These are factors used in financial formulas to determine the present value of future cash flows or income.

Market Rate

The prevailing interest rate available in the financial markets for a similar instrument or the going rate for goods or services in a certain market.