When determining goals to increase profitability, a manager assuming his company can gain a larger share of its market is an example of a(an) ________.
A) premise
B) objective
C) contingency
D) affirmation
E) standing plan

Question

Quizplus · Accepted Answer

A premise is an assumption or belief that serves as a basis for action or argument. The manager's assumption that the company can gain a larger share of its market is a premise. Option B (objective) is incorrect because increasing profitability is the objective, not the assumption. Option C (contingency) is incorrect because it refers to a plan or strategy for dealing with possible future events. Option D (affirmation) is incorrect because it refers to a statement of support or agreement. Option E (standing plan) is incorrect because standing plans are ongoing plans or policies used to guide decision-making in recurring situations, and this assumption may not be a recurring situation.

When Determining Goals to Increase Profitability, a Manager Assuming His