5 points

Question 10

The present value of an amount can be represented as

		PV = FVn[PVFk,n]
		PV = FVn[PVFAk,n]
		PV = FVn[1 / (1 + k)^n]
		all of the above
		a and c only

5 points

Question 11

Small business plans differ from large company plans in that

		small business plans normally do not discuss strategic planning at all.
		small business plans usually don't include short-term forecasts.
		small business plans don't generally discuss the decision to choose the business they are in over others.
		Both b. and c.
		All of the above.

5 points

Question 12

Which of the following is not a major reason for developing a business plan?

		the process helps pull the management team together
		the completed plan is a vehicle for communicating managements vision to others.
		planning enables management to defend itself against criticism from disgruntled stockholders
		the finished plan serves as a roadmap for running the business.

5 points

Question 13

A planning assumption is a physical or economic condition or management decision that is expected to exist during the planning period.

True

False

5 points

Question 14

The Florida lottery agrees to pay the winner $250,000 at the end of each year for the next 20 years. What is the future value of this prize if each payment is put in an account earning 9 percent?

		$2.28 million
		$12.79 million
		$14.32 million
		$ 5.00 million

5 points

Question 15

Large companies tend to do which of the following types of business planning?

		strategic planning
		operational planning
		budgeting and forecasting
		all of the above