Formal planning is associated with higher profits and higher return on assets.

Question

Quizplus · Accepted Answer

Studies have shown that formal planning is positively related to higher profits and higher return on assets. This is because formal planning helps a company to set clear objectives, allocate resources effectively, and make data-driven decisions, leading to more efficient and effective use of resources, increased productivity, and ultimately, higher profitability.

Formal Planning Is Associated with Higher Profits and Higher Return