Describe some of the reasons for the lack of distinct planning in new ventures.
What will be an ideal response?
ANSWER: There are five reasons for the lack of strategic planning.
1.Time scarcity. Entrepreneurs report that their time is scarce, and it is difficult to allocate what time they do have to planning in the face of day-to-day operating schedules.
2.Lack of knowledge. Entrepreneurs have minimal exposure to, and knowledge of, the planning process. They are uncertain of the components of the process and the sequence of those components. Entrepreneurs also are unfamiliar with many planning information sources and how they can be used.
3.Lack of expertise/skills. Entrepreneurs typically are generalists, and they often lack the specialized expertise necessary for the planning process.
4.Lack of trust and openness. Entrepreneurs are highly sensitive and guarded about their businesses and the decisions that affect them. Consequently, they are hesitant to formulate a strategic plan that requires participation by employees or outside consultants.
5.Perception of high cost. Entrepreneurs perceive the cost associated with planning to be very high. This fear of expensive planning causes many business owners to avoid or ignore planning as a viable process.
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Development of a transfer price involves
a. including only costs allocated from corporate levels when determining semi-finished product line costs. b. direct upper management intervention if different transfer prices are determined by the selling division and the buying division. c. applying a target profit rate to the unit cost for the semi-finished product. d. heavy reliance on industry averages.
Because accountants have financial expertise, they are the only ones that are able to set standard costs for the production area
Indicate whether the statement is true or false
During which stage of the retail life cycle do sales and then profits rise for the first retailers in this category?
a. maturity b. decline c. introduction d. accelerated development
The U.S. Constitution vests power in the branches of government that form a "checks and balances" system. Those branches of government include:
a. executive. b. legislative c. judicial. d. All of these.