Which of the Following Is True of Planning

question 36

Multiple Choice

Which of the following is true of planning?

• A) Most planning is carried out on a formal basis.
• B) Planning should not involve personnel from all areas of the organization.
• C) Planning enables a manager or an organization to passively affect rather than actively accept the future.
• D) Planning needs of an organization are independent of the environment, size, and type of business.
• E) Long-range planning is possible at any level in the organization.

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Definitions:

Diversification

A risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to reduce exposure to any single asset or risk.

Risk-Averse Investors

Investors who prioritize minimizing risk over maximizing returns, often choosing safer, lower-yield investments.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.