1. The managerial value of planning includes:

a resulting road map for running the business.

the planning process brings the management team together.

planning that provides credibility to employees.

Both "the planning process brings the management team together" & "a resulting road map for running the business".

All of these choices are correct.

2. Which of the following can help ensure that everyone understands what they have to do in the coming year?

Comparing actuals with budgets

The business planning process

Making accurate financial plans

Making different people accountable for same tasks

3. Which of the following correctly states the business plan types that contain the lowest and greatest proportions of financial detail?

Lowest - strategic planning; greatest - budgeting

Lowest - forecasting; greatest - operational planning

Lowest - operational planning; greatest - budgeting

Lowest - forecasting; greatest - budgeting

Lowest - strategic planning; greatest - forecasting

4. Forecasts tend to be:

short-term.

filled with supporting documentation.

focused on making either profit or cash flow projections.

Both "short-term" & "focused on making either profit or cash flow projections".

All of these choices are correct.

5. Which of the following is FALSE regarding the business plans of small business?

Similar to annual plans of large business

Provides thorough rationale for concrete actions

Includes elements of strategic planning

Covers the broadest and most basic strategic issues