The Planning Gap Refers to

question 132

Multiple Choice

The planning gap refers to

• A)the difference between projected total costs and realized total revenues.
• B)the difference between projected total costs and net profits.
• C)the difference between marginal revenue and marginal cost.
• D)the percentage point difference between a firm and its next largest competitor in terms of market share.
• E)the difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place.

Recognize the financial mechanisms like revolving credit agreements and factoring receivables used to enhance liquidity.

Understand the concept and operational details of the cash conversion cycle.

Identify the reasons for holding cash and the concept of precautionary demand for cash.

Understand how lockbox systems and float management can improve a firm’s cash management.

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Definitions:

Self-transcendence

A state in which individuals extend beyond the personal to encompass wider aspects of humanity, nature, or the cosmos.

Actual Self

One's perception of their own abilities, appearance, and personality as they currently exist, as opposed to how they might wish to be.

Ideal Self

A person's conception of how they would like to be, often serving as a motivational guide toward personal growth and achievement.

Gordon Allport

An influential psychologist known for his theory of personality and his research on prejudice and the concept of personal constructs.