Which of the Following Is True of the Planning Process

question 32

Multiple Choice

Which of the following is true of the planning process in an organization with an innovative culture?

• A)It encourages lower-level managers to participate in the process.
• B)It rarely takes risks involving the development of new products.
• C)It emphasizes formal top-down planning.
• D)It subjects the suggestions from lower-level managers to a formal review process that significantly slows decision making.
• E)It creates a well-defined hierarchy of authority and establishes clear reporting relationships so that employees know exactly whom to report to.

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Definitions:

Investment Charges

Fees and expenses associated with investing in various types of investment vehicles, like mutual funds or stocks.

Public Saving

The difference between a government's total revenue and its total expenditures, reflecting the surplus or deficit in the public sector's budget.

Private Saving

Private saving is the portion of households' and businesses' income that is not spent on consumption or paying taxes, and is instead saved for future use.

National Saving

The total saving of an economy, consisting of both private saving (by households and businesses) and public saving (government surplus).