What Is the First Step in the Strategic Management Process

question 35

Multiple Choice

What is the first step in the strategic management process?

• A) formulating a strategy
• B) defining the current business and its mission
• C) translating a mission into goals
• D) implementing an environmental scan

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Definitions:

Budgeted Income Statement

A financial forecast that projects a company's revenue, expenses, and net income for a given period.

Capital Expenditures Budget

The Capital Expenditures Budget is a plan for the funds to be spent on long-term assets that will have a useful life beyond the current fiscal year, such as buildings, equipment, or vehicles.

Plant Assets

Long-term tangible assets used in the operation of a business that are not intended for resale.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used to manage liquidity.