Types of Plans That Businesses Typically Use to Guide Their

question 65

Multiple Choice

Types of plans that businesses typically use to guide their operations include

• A) strategic plans.
• B) long-range financial plans.
• C) short-range financial plans.
• D) all of the above.

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Definitions:

Book Values

The value of an asset as recorded on the balance sheet, calculated as the original cost of the asset minus accumulated depreciation.

Flotation Costs

Flotation Costs are costs incurred by a company when it issues new securities, including underwriting fees, legal fees, and registration fees.

Cumulative Preferred Stock

Cumulative preferred stock is a type of preferred share that accrues dividends in case they are not paid out in the year they are due, ensuring dividends are paid out before any are distributed to common shares.

Marginal Income Tax Rate

The proportion of tax levied on your earnings for every tax bracket you fall into.