When Selecting Among Possible Product-Market Strategic Plans

question 171

Multiple Choice

When selecting among possible product-market strategic plans,

• A) the total profit approach tends to support plans that will be profitable in the short term even if longer term profits would be higher with another plan.
• B) the total profit approach requires estimates of sales, costs, and profits.
• C) the total profit approach compares plans that require the same investment.
• D) None of these statements is true.

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Definitions:

Expected Rate Of Return

The anticipated amount of profit or loss an investment generates, based on historical or estimated performances.

Standard Deviation

A measure of the amount of variability or dispersion of a set of values; used in finance to represent the volatility of an investment.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.