Which of the Following Would Be a Concern Addressed in a Strategic

question 154

Multiple Choice

Which of the following would be a concern addressed in a strategic plan?

• A) Should the firm make a long-term commitment to expand into new markets?
• B) Which specific jobs should be assigned to each employee?
• C) How much output should be produced this week in a given production facility?
• D) Which computer software package should the firm's human resources office use to manage the payroll?

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Definitions:

Salvage Value

The estimated residual value of an asset after its useful life is over and it has been fully depreciated.

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Cost of Capital

The return rate that a company must earn on its investment projects to maintain its market value and attract funds.

Net Present Value

A calculation used to determine the present value of a series of future cash flows minus the initial investment, often used in capital budgeting.