Which of the Following Is a Disadvantage of Planning

question 58

Multiple Choice

Which of the following is a disadvantage of planning?

• A) It increases employee turnover.
• B) It creates a false sense of certainty.
• C) It decreases the effort put in by managers and employees.
• D) It pressures employees to work for extended periods.

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Definitions:

Capital Budget

The planning process used by a company to determine whether its long-term investments or projects are worth pursuing.

Dividend Per Share

The sum of declared dividends for every share of common stock issued, divided by the number of outstanding shares.

Outstanding Shares

The total shares of stock that are currently owned by shareholders, including restricted shares owned by company insiders.

Profitable Projects

Initiatives or plans that are expected to generate earnings exceeding their costs.