When selecting among possible product-market strategic plans,
A) the total profit approach tends to support plans that will be profitable in the short term even if longer term profits would be higher with another plan.
B) the total profit approach requires estimates of sales, costs, and profits.
C) you can only use the ROI approach to compare plans that require the same investment.
D) All of the above are true.
E) None of the above is true.

Question

Quizplus · Accepted Answer

The total profit approach requires estimates of sales, costs, and profits, which means that it takes into account not only short term profitability but also long term profitability. The other options are not entirely accurate. The total profit approach does prioritize long term profits over short term profits, contrary to what option A suggests. Additionally, option C is not entirely correct because the ROI approach can be used to compare plans with different investments, but it requires additional calculations such as dividing the ROI by the initial investment.

When Selecting Among Possible Product-Market Strategic Plans