What Do You Know About Planning
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Planning is defined as
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Deciding in advance what must be done in the future
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Deciding what must be done in emergency situations
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Projecting potential cash flows for a coming year
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None of the above
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Explore the fundamentals of planning in business management. This quiz assesses your understanding of planning definitions, processes, strategic vs operational planning, and challenges in plan implementation. Essential for aspiring managers and business professionals.
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- 2.
Planning consists of establishing
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Rules
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Methods
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Procedures
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all of the above
Correct Answer
A. all of the aboveExplanation
Planning consists of establishing rules, methods, and procedures. Rules are guidelines or principles that guide decision-making and behavior. Methods are specific techniques or approaches used to accomplish tasks or achieve objectives. Procedures are step-by-step instructions that outline how to carry out a particular task or process. Therefore, all of the above options are correct as they are all components of planning.Rate this question:
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- 3.
Which of the following is a prerequisite to planning?
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Well-defined budget
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Prompt accounting system
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Knowledge of external environmental threats
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(a) and (b)
Correct Answer
A. Prompt accounting systemExplanation
A prompt accounting system is a prerequisite to planning because it provides accurate and up-to-date financial information that is essential for making informed decisions and setting realistic goals. Without a prompt accounting system, it would be difficult to track expenses, allocate resources effectively, and evaluate the financial feasibility of various plans. This system ensures that financial data is readily available, enabling planners to assess the financial implications of their decisions and make necessary adjustments to achieve their objectives.Rate this question:
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- 4.
Strategic planning looks ______ year(s) into the future and operational planning looks _____ year(s) into the future.
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Three to five; one to three
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Three to ten; three
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Three to ten; one
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three to five; one to two
Correct Answer
A. Three to ten; oneExplanation
Strategic planning is a long-term planning process that looks three to ten years into the future. It involves setting goals, identifying resources, and formulating strategies to achieve those goals. On the other hand, operational planning is a shorter-term planning process that looks one year into the future. It focuses on the day-to-day activities and tasks required to implement the strategies outlined in the strategic plan. Therefore, the correct answer is "three to ten; one".Rate this question:
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- 5.
Which of the following is a disadvantage of top-down planning?
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Senior management has insight only into the future.
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Plan implementation may be difficult if senior management has no input.
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Subordinates may not be in the best position to view the future.
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Plan implementation may be difficult if subordinates have little or no input.
Correct Answer
A. Plan implementation may be difficult if subordinates have little or no input.Explanation
Top-down planning involves senior management making decisions and creating plans without much input from subordinates. This can be a disadvantage because subordinates, who are closer to the day-to-day operations, may have valuable insights and ideas that can contribute to the success of the plan. Without their input, plan implementation may be difficult as subordinates may feel less ownership and commitment to the plan, leading to resistance or lack of cooperation. This can hinder the effectiveness and efficiency of the plan.Rate this question:
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- 6.
Zero-based planning
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requires justification for new equipment, positions, and programs
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Is a conservative method of planning
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(a) and (b)
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none of the above
Correct Answer
A. (a) and (b)Explanation
Zero-based planning requires justification for new equipment, positions, and programs. This means that when using zero-based planning, any new investments or additions to the organization must be thoroughly justified and supported with evidence. This method is considered conservative because it does not assume that existing resources and plans are sufficient, but instead requires a fresh evaluation and justification for each new addition. Therefore, the correct answer is (a) and (b) because both statements accurately describe zero-based planning.Rate this question:
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- 7.
Incremental planning
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Requires justification for new equipment, positions, and programs
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Assumes all current operations, equipment, and positions are essential to the mission of the organization
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occurs on a monthly basis by department managers
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is used only by specialized committees for ad hoc projects
Correct Answer
A. Assumes all current operations, equipment, and positions are essential to the mission of the organizationExplanation
Incremental planning assumes that all current operations, equipment, and positions are essential to the mission of the organization. This means that when creating a new plan, it is assumed that everything currently in place is necessary and should be continued. It does not require justification for new equipment, positions, and programs, occur on a monthly basis by department managers, or used only by specialized committees for ad hoc projects.Rate this question:
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- 8.
What are the four stages of corporate planning?
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Strategic planning, operational planning, budgeting, capital budgeting
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Operational planning, zero-based planning, incremental planning, budgeting
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Capital budgeting, zero-based planning, operational planning, strategic planning
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Budgeting, capital budgeting, incremental planning, operational planning
Correct Answer
A. Strategic planning, operational planning, budgeting, capital budgetingExplanation
The correct answer is strategic planning, operational planning, budgeting, and capital budgeting. Strategic planning involves setting long-term goals and developing strategies to achieve them. Operational planning focuses on short-term goals and determining the actions needed to achieve them. Budgeting involves creating a financial plan that allocates resources to different activities and projects. Capital budgeting involves evaluating and selecting investments in long-term assets or projects.Rate this question:
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- 9.
What is capital budgeting?
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The process used to convert the strategic plan into budgets for capital expenditures
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The process used to budget for anticipated capital expenditures for the next fiscal year
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The process used to convert the operational plan into budgets for capital expenditures
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The process used to budget for capital expenditures three to five years out
Correct Answer
A. The process used to convert the operational plan into budgets for capital expenditures -
- 10.
What is the first step in the planning process?
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Assess the internal and external environments
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Engage physicians in the process
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Establish strategic goals
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Validate the mission and strategic interpretations
Correct Answer
A. Validate the mission and strategic interpretationsExplanation
The first step in the planning process is to validate the mission and strategic interpretations. This involves ensuring that the organization's mission statement aligns with its goals and objectives, and that the strategic interpretations are accurate and feasible. By validating these aspects, the organization can establish a clear direction and purpose for its planning efforts.Rate this question:
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- 11.
When assessing the external environment, what factors must be considered?
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National trends
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The direction of local markets
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External threats to the organization
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All of the above
Correct Answer
A. All of the aboveExplanation
When assessing the external environment, it is important to consider all of the above factors. National trends provide insights into the overall economic, political, and social conditions of a country, which can impact the organization's operations. The direction of local markets helps identify potential opportunities and challenges specific to the organization's target market. External threats include competition, technological advancements, and regulatory changes that may affect the organization's ability to achieve its goals. Considering all of these factors allows for a comprehensive analysis of the external environment and helps the organization make informed decisions.Rate this question:
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- 12.
What is the purpose of a SWOT analysis during an internal environment investigation?
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To identify the organization’s position in the market relative to its competitors
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To identify the organization’s strengths and weaknesses
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To identify the organization’s opportunities and threats
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To identify proactive strategies the organization may take against national trends
Correct Answer
A. To identify the organization’s strengths and weaknessesExplanation
A SWOT analysis is conducted during an internal environment investigation to identify the organization's strengths and weaknesses. This analysis helps in assessing the internal factors that can influence the organization's performance and competitiveness. By identifying strengths, the organization can leverage them to gain a competitive advantage, while weaknesses can be addressed and improved upon. It provides a comprehensive understanding of the organization's current capabilities and areas that need development or enhancement. This information is crucial for making informed decisions and formulating effective strategies to achieve organizational goals.Rate this question:
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- 13.
What are strategic goals?
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Broad statements of significant results the organization wants to achieve
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Specific statements of significant results the organization wants to achieve
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Broad benchmarks an organization wants to achieve relative to its mission
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Specific factors that set an organization apart from its competitors
Correct Answer
A. Broad statements of significant results the organization wants to achieveExplanation
Strategic goals are broad statements that outline the significant results an organization aims to achieve. These goals provide a clear direction and focus for the organization's actions and initiatives. They are not specific or detailed, but rather serve as a high-level roadmap for the organization's overall objectives. By setting strategic goals, an organization can align its resources and efforts towards achieving desired outcomes and ultimately fulfilling its mission.Rate this question:
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- 14.
The strategic financial plan is the link between the _____ and the _____.
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Strategic plan; capital budgeting plan
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operational plan; budget
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strategic plan; operational plan
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budget; capital budgeting plan
Correct Answer
A. strategic plan; operational planExplanation
The strategic financial plan serves as a connection between the strategic plan and the operational plan. It helps to align the financial goals and objectives of the organization with the overall strategic direction. By linking the strategic plan and the operational plan, the strategic financial plan ensures that financial resources are allocated appropriately to support the implementation of the organization's strategic initiatives. This helps to ensure that the organization's financial decisions and actions are in line with its strategic objectives and contribute to its long-term success.Rate this question:
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- 15.
Which of the following characteristics differentiates strategic planning from operational planning?
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The participants in the planning process
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The objectives of the planning process
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The planning horizon
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All of the above
Correct Answer
A. All of the aboveExplanation
Strategic planning and operational planning differ in several characteristics. The participants in the planning process differ as strategic planning involves top-level management and key decision-makers, while operational planning involves middle and lower-level managers. The objectives of the planning process also differ as strategic planning focuses on long-term goals and overall direction of the organization, while operational planning focuses on short-term goals and specific actions to achieve them. Additionally, the planning horizon differs as strategic planning looks at the long-term future, usually three to five years, while operational planning focuses on the immediate future, usually one year or less. Therefore, all of the above characteristics differentiate strategic planning from operational planning.Rate this question:
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- 16.
Which of the following are characteristics of management by objectives (MBO)?
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Subordinates propose objectives to management
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Converge
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Proposed objectives are negotiated until a decision is made
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Diverge
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The manager provides subordinates with a general overview of the work to be accomplished in the following year
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All of the above
Correct Answer(s)
A. Diverge
A. All of the aboveExplanation
Management by objectives (MBO) is a goal-setting approach that involves subordinates proposing objectives to management. These proposed objectives are then negotiated until a decision is made. Additionally, the manager provides subordinates with a general overview of the work to be accomplished in the following year. Therefore, all of the given options are characteristics of MBO. As for the term "Diverge," it is unrelated to the question and does not provide any explanation.Rate this question:
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- 17.
What are some characteristics of good policies?
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Flexibility
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Consistency
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Clear communication
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All of the above
Correct Answer
A. All of the aboveExplanation
Good policies should have flexibility, consistency, and clear communication. Flexibility allows for adaptability and adjustments to changing circumstances. Consistency ensures that policies are applied uniformly and fairly across all situations. Clear communication ensures that policies are easily understood and followed by all stakeholders. All of these characteristics contribute to the effectiveness and success of policies in achieving their intended goals.Rate this question:
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- 18.
Procedures are
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Detailed, uniform instructions with predictable outcomes
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guides to action
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Statements that either require or forbid an action
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guides to thinking
Correct Answer
A. guides to actionExplanation
Procedures are guides to action because they provide detailed and uniform instructions that individuals can follow in order to achieve a predictable outcome. These instructions outline the specific steps or actions that need to be taken in a given situation, providing a clear and structured approach to completing a task or solving a problem. By following these guides to action, individuals can ensure that they are following a standardized process and increase the likelihood of achieving the desired result.Rate this question:
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- 19.
Methods are
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guides to action
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Detailed, uniform instructions with predictable outcomes
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Guides to thinking
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statements that either require or forbid an action
Correct Answer
A. Detailed, uniform instructions with predictable outcomesExplanation
Methods are detailed, uniform instructions with predictable outcomes. This means that methods provide a step-by-step approach to performing a task or achieving a goal. They are designed to be consistent and reliable, ensuring that the same actions will yield the same results every time. By following a method, individuals can effectively carry out a specific action or process, knowing what to do at each stage and what outcome to expect. Methods provide a structured approach to problem-solving or decision-making, making them valuable tools in various fields and disciplines.Rate this question:
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- 20.
How often should a strategic plan be reviewed?
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Every three to five years
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Semiannually
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On an annual basis
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Every two years
Correct Answer
A. On an annual basisExplanation
A strategic plan should be reviewed on an annual basis to ensure that it is still aligned with the organization's goals and objectives. This allows for any necessary adjustments or revisions to be made in a timely manner, keeping the plan current and relevant. Annual reviews also provide an opportunity to evaluate the progress and effectiveness of the plan, making any necessary improvements or changes as needed. By reviewing the strategic plan annually, organizations can stay agile and responsive to changes in the business environment.Rate this question:
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Current Version
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Aug 14, 2024Quiz Edited by
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Apr 05, 2016Quiz Created by
Millerthomas2008
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