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AICPA CPA-Business Exam - Topic 3 Question 69 Discussion

Actual exam question for AICPA's CPA-Business exam
Question #: 69
Topic #: 3
[All CPA-Business Questions]

Which one of the following management considerations is usually addressed first in strategic planning?

Show Suggested Answer Hide Answer
Suggested Answer: A

Choice 'a' is correct. 7.0 percent cost of funds from retained earnings.

The cost of retained earnings is equal to the rate of return required by the firm's common shareholders (or, in effect, the return 'lost' by them when the firm chooses to fund with retained earnings). While oftentimes this rate is somewhat subjective, we are given the facts to exactly answer the question in this case. The stock is currently selling for $100/share, and the dividend is given at $7/share.

$7 / $100 = 7%

Choices 'b', 'c', and 'd' are incorrect, per the above Explanation:/calculation.


by Jenelle at Apr 24, 2023, 03:44 AM

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Skye
4 months ago
Yeah, overall goals set the direction for everything else.
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Jules
4 months ago
Surprised that being an industry leader isn't the top priority!
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Son
4 months ago
Recent annual budgets are usually last on the list.
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Luther
4 months ago
I think organizational structure should come before that.
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Mira
4 months ago
Definitely overall goals first!
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Vicente
5 months ago
I feel like recent annual budgets might come into play later in the process, so I would probably go with A as well.
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Antonio
5 months ago
I’m a bit confused; I thought organizational structure was also a key consideration early on. Maybe it’s B?
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Leatha
5 months ago
I remember a practice question that emphasized the importance of setting goals before anything else, so I’m leaning towards A.
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Hershel
5 months ago
I think the overall goals of the firm are usually the first thing addressed in strategic planning, but I'm not completely sure.
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Mose
5 months ago
This is a good test of our understanding of cloud usage models. I think the key is to focus on the specific details provided, like the customer needing extra capacity to handle seasonal spikes. Based on that, I'd say the answer is "Data center extension."
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Art
5 months ago
Hmm, I'm a bit confused by the wording of the options. I'll need to read through them carefully to understand the differences.
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Karima
5 months ago
Hmm, the key seems to be restoring load balancing while maintaining session persistence. I'm leaning towards option A, but I'll double-check the details.
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Ilda
5 months ago
Okay, let's see here. I think the key steps are to save the workbook as a macro-enabled file and then reopen it. The message box and macro settings seem like they might be related, but I'm not totally sure. I'll need to double-check the details on those.
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Brice
5 months ago
This question seems straightforward - the key is to focus on improving fault isolation and troubleshooting time, which is option A.
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Clay
10 months ago
Haha, maybe they're testing our sense of humor. Annual budgets? That's like asking a chef to decide the restaurant's decor.
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Justine
9 months ago
C) Recent annual budgets.
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Erasmo
9 months ago
B) Organizational structure.
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Wilbert
9 months ago
A) Overall goals of the firm.
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Coleen
10 months ago
Recent annual budgets? Come on, that's just numbers, not the big picture. Obviously, it's about being an industry leader!
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Jeanice
8 months ago
D) Being an industry leader.
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Dana
9 months ago
B) Organizational structure.
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Stephanie
9 months ago
A) Overall goals of the firm.
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Refugia
9 months ago
D) Being an industry leader.
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Pilar
9 months ago
B) Organizational structure.
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Ashlyn
9 months ago
A) Overall goals of the firm.
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Carma
10 months ago
I'd say organizational structure is the key here. You need to understand your capabilities before setting goals.
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Ariel
10 months ago
Definitely the overall goals of the firm. You can't build a strategy without clear objectives in mind.
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Azzie
10 months ago
Definitely the overall goals of the firm. You can't build a strategy without clear objectives in mind.
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Charolette
10 months ago
A) Overall goals of the firm.
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Annelle
10 months ago
But what about D) Being an industry leader? Shouldn't that be the priority?
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Ryan
11 months ago
I agree with Dolores. Setting the overall goals is crucial for strategic planning.
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Dolores
11 months ago
I think A) Overall goals of the firm is usually addressed first.
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