Action Plans Are Important for Several Reasons

question 45

Multiple Choice

Action plans are important for several reasons. Which one of the following is NOT one of these reasons?

• A) If the action plan is implemented properly, it ensures that the strategy will be a success.
• B) It serves as a link between strategy formulation and evaluation and control.
• C) The action plan specifies what needs to be done differently from the way operations are currently carried out.
• D) During the evaluation and control process, an action plan helps in the appraisal of the performance and identifying remedial actions needed.
• E) Motivation may be improved with the assignment of specific responsibility.

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Definitions:

Depreciation

The gradual decrease in the economic value of the capital stock of a firm, country, or other entity, either through physical wear and tear or obsolescence.

Control

In the context of management or economics, it refers to the ability to direct the behavior of a system or the decisions within an organization to achieve desired outcomes.

Annual Interest Rate

The annual interest rate is the percentage of interest that is charged or earned on an investment or loan over a one-year period.

Gross Investment

The total amount spent on purchasing or building new fixed assets and on replacing old assets, without deducting for depreciation.