Which of the following refers to a profit planning step in the context of small businesses?
A) Listing strategies for rapid growth
B) Comparing the estimated profit with the profit goal
C) Listing strategies for diversification
D) Analyzing the diversification strategies of competitors

Question

Quizplus · Accepted Answer

Comparing the estimated profit with the profit goal is a key profit planning step in small businesses. This involves setting a clear profit goal and then estimating the likely revenue and expenses in order to determine whether the goal is achievable. By comparing the estimated profit with the profit goal, small business owners can identify any gaps and develop strategies to bridge them. Listing strategies for rapid growth or diversification may be part of the overall profit planning process, but they are not specific profit planning steps. Analyzing the diversification strategies of competitors is more relevant to competitive analysis than profit planning.

Which of the Following Refers to a Profit Planning Step