Planning Involves

question 26

Multiple Choice

Planning involves:

• A) a definition of mission and vision.
• B) an analysis of the current situation and a forecast of future events.
• C) the establishment of objectives and priorities.
• D) a decision on a course of action.
• E) all of the above.

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Definitions:

Business Strategy

It's a plan of action designed by business leaders to achieve competitive advantage and successfully compete in the market.

Average Total Cost

The total cost of production divided by the number of units produced, indicating the average cost per unit of output.

Competitive Market

An economic scenario where numerous producers and consumers interact, ensuring prices are determined by supply and demand forces without significant influence by any single participant.

Sunk Costs

Expenses that have been incurred and cannot be recovered, regardless of future actions.