How Can Managers Effectively Plan When the External Environment Is

question 55

Multiple Choice

How can managers effectively plan when the external environment is continually changing?

• A) They should discontinue formal planning.
• B) They should set general, but rigid plans.
• C) They should be ready to change directions if environmental conditions warrant.
• D) They should continue to follow the set organizational plans as persistence will eventually pay.

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Definitions:

Return On Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.

Investment Opportunity

An investment avenue that has the potential to yield returns, involving the allocation of resources in expectation of future gains.

Minimum Required Rate

This is the lowest return that investors are willing to accept for investing in a project or security, often used in capital budgeting to assess potential investments.

Return On Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing the net profit of the investment by its cost.