Strategic Planning Differs from Scenario Planning in That

question 75

Multiple Choice

Strategic planning differs from scenario planning in that:

• A) Strategic planning is long-term planning; scenario planning is not.
• B) Strategic planning is bottom-up from the employees, and scenario planning is top-down from the CEO.
• C) Strategic planning is performed by many layers in the organization, while scenario planning is limited to top executives.
• D) Strategic planning assumes that future success can be predicted; scenario planning allows for more unforeseen events.

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Definitions:

Market Rate

The prevailing rate of interest or return available on investments, often referred to in the context of loans or savings.

Capital Loss

The loss incurred when the selling price of an asset is less than the purchase price, reflecting a decrease in the value of the asset.

Put Bond

A type of bond that allows the holder to force the issuer to buy back the bond at specified times before maturity.

Deferred Call Provision

A clause in a bond contract that prohibits the issuer from repurchasing the bond until a specified date has passed.