Top-Down Planning That Emphasizes Formal Strategy Formulation and Leaves the Implementation

question 99

Multiple Choice

Top-down planning that emphasizes formal strategy formulation and leaves the implementation issues to lower management levels is known as

• A) forecast-based planning.
• B) externally oriented planning.
• C) strategic management.
• D) basic financial planning.
• E) none of the above

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Definitions:

Eliminating Product

The process of discontinuing the production and sale of a product, typically due to poor sales, profitability, or strategic realignment.

Financial Advantage

The benefit gained from making a financially prudent decision that leads to wealth accumulation, cost savings, or any other monetary gain.

Dropping Product

The decision to discontinue the production and sale of a product line or item, typically due to it not meeting financial or strategic goals.

Contribution Margin

The amount remaining from sales revenues after all variable expenses are paid, contributing towards covering fixed costs and profit.