To Correctly Project Cash Flows, We Need to Consider All

question 105

Multiple Choice

To correctly project cash flows, we need to consider all of the factors EXCEPT:

• A)use of assets or employees already employed by the firm.
• B)the likely impact that the new service or product will have on the firm's existing products' cost and revenues.
• C)the new product's or service's costs and revenues.
• D)All of these are factors that need to be considered.

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Definitions:

Strategic Planning Pitfall

Common traps or mistakes made during the strategic planning process that can hinder an organization's success.

Strategic Leadership

The ability to influence others to voluntarily make decisions that enhance the prospects for the organisation's long-term success.

Incrementalism

A policy or decision-making process based on making small changes or adjustments, rather than large leaps, to gradually reach a desired outcome.

Strategic Planning

The process of defining an organization's direction and making decisions on allocating its resources to pursue this strategy.