When Most of the Elements of a Financial Plan Are

question 52

Multiple Choice

When most of the elements of a financial plan are related to sales levels,the plan is:

• A) less likely to be effective.
• B) using sales as a plug figure.
• C) a percentage of sales model.
• D) not adjusted for inflation.

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Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period.

Marginal Revenue Curve

A graphical representation showing how marginal revenue changes as output level changes.

Competitive Industry

An industry characterized by many firms offering similar products where no single firm can influence the market price.

Monopolistic Industry

An industry characterized by the domination of one firm which controls the majority of the market share and can influence price and competition.