Strategic planning answers the question "__________"

• A. How much money do we have?
• B. How many people do we need?
• C. Who are we competing with?
• D. Where are we going?

2. After a significant economic recession, prices and investing activity in the stock market began trending consistently upward six years ago. In the last three months, this trend has reversed and prices have fallen steadily.

How are the past three months of the stock market classified?

• A. Secular bear market
• B. Secular bull market
• C. Primary bull market
• D. Primary bear market

3. In which scenario would benchmarking be least useful?

• A. Comparing financial ratios of a company in a primary industry and an extractive industry
• B. Comparing financial ratios of a company in an extractive industry and a tertiary industry
• C. Comparing financial ratios of a company in a secondary industry and a manufacturing industry
• D. Comparing financial ratios of a company in a tertiary industry and a service industry

4. If a sales increase is forecasted, how will it affect expenses on the pro forma income statement if market conditions are expected to remain stable?

• A. It depends on the type of product being sold.
• B. Expenses will decrease.
• C. Expenses will increase.
• D. There will be no effect on expenses.

5. The pro forma balance sheet reflects the impact of a company's strategic plan on its __________.

• A. revenue and expenses
• B. revenue and expenses
• C. share price
• D. assets and liabilities

6. What is the recent trend of algorithmic trading criticized for?

• A. Improving market liquidity
• B. Increasing market volatility
• C. Over-extending credit
• D. Being too transparent