The Fourth Step of the Small Business Strategy Planning Process

question 20

Multiple Choice

The fourth step of the small business strategy planning process

• A)is where you consider your customers and the benefits you want to offer them.
• B)aims to refine your firm's capabilities in order to maintain a competitive advantage.
• C)involves determining the best strategic direction and strategy for the firm.
• D)is to study the dynamics and trends of your industry.

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Definitions:

Price of Capital

The cost of using capital to produce goods or services, often represented by the interest rate on borrowed funds or the opportunity cost of using one's own funds.

Future Profits

Expected earnings or gains in the future, often incorporating risk and uncertainty predictions.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual rate.

Interest Rate

The percentage of principal charged by the lender for the use of its money.