A total profit approach to evaluating product-market strategic plans
A) will not work if the plans are for the same number of years.
B) will be most useful when the plans require very different levels of investment.
C) may support a particular plan even if it generates poor profits in some years.
D) Both A and B are true.
E) None of the above is true.

Question

Quizplus · Accepted Answer

A total profit approach takes into account the cumulative profits of a product-market strategic plan over a certain period of time. Therefore, it may support a particular plan that generates poor profits in some years if it generates high profits in other years. This approach is valuable for evaluating plans with different investment levels, but it can also be applied to plans for the same number of years. Therefore, option A is incorrect, and option B is only partially correct.

A Total Profit Approach to Evaluating Product-Market Strategic Plans