Are Strategic or Operational Plans Needed? Does Long-Term Planning Make

question 138

Essay

Are strategic or operational plans needed? Does long-term planning make sense in current business environment? These decisions are affected by three contingency variables.In a short essay,explain the three contingency factors and illustrate how these factors influence planning.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Straight-Line Depreciation

A way of distributing the financial burden of a tangible asset over its lifespan in equal yearly portions.

Initial Investments

The initial amount of money invested in a project or business to cover startup costs or to purchase fixed assets.

Income Taxes

Income taxes are taxes levied by governments on individuals and corporations based on their net income or profit within a financial year.