Which Type of Plan Acts as a Framework for Decisions

question 40

Multiple Choice

Which type of plan acts as a framework for decisions and assists in setting corporate benchmarks?

• A) operational
• B) tactical
• C) contingency
• D) strategic
• E) emergency

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Definitions:

Opportunity Costs

The potential benefits missed out on when choosing one alternative over another.

IRR

The Internal Rate of Return is a financial metric used to estimate the profitability of potential investments, calculated as the rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the initial investment from the present value of cash inflows.

AAR

Average Annual Return; calculating the mean annual return of an investment over a specified time period.