Scott Is the Business Head of a Software Development Firm

question 33

Multiple Choice

Scott is the business head of a software development firm that wants to increase its market share to 30 percent in the next 5 years.The company feels that the best way to go about this is to acquire smaller firms that have a promising talent pool.In his capacity as a business head,Scott is required to plan how the company will arrange for the necessary finances for these acquisitions.Scott is engaging in ________ for the firm.

• A) operational planning
• B) product planning
• C) tactical planning
• D) strategic planning

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Definitions:

Yield-To-Maturity

The total return anticipated on a bond if it is held until the maturity date.

Bond Principle

The face value of a bond, which is the amount to be repaid by the issuer to the bondholder at maturity.

Bankruptcy

A legal process wherein individuals or entities declare their inability to pay back their debts.

Sinking Fund

A fund established by a borrower, setting aside revenue over time to repay a debt or replace a depreciating asset in the future.