Future Business Leaders of America (FBLA) Business Management Practice Test

What type of planning is defined as long-range planning by a company's senior managers?

1. Emergency planning

2. Long-range planning

3. Occasional planning

4. Tax planning

The correct answer is: Long-range planning

Long-range planning is characterized by its focus on establishing a company's strategic direction over an extended timeframe, typically encompassing several years into the future. Senior management conducts this type of planning to set long-term goals, allocate resources, and make key decisions that align with the organization's vision and mission. This form of planning involves analyzing market trends, assessing internal capabilities, and anticipating future challenges or opportunities. By developing a comprehensive long-range plan, senior managers can ensure that the organization is well-prepared to navigate changes and pursue growth initiatives effectively. In contrast to this approach, emergency planning is designed for short-term crises, occasional planning refers to sporadic decision-making that doesn't involve sustained strategic focus, and tax planning specifically addresses tax liabilities and obligations rather than overarching organizational strategies. Hence, long-range planning is distinct due to its proactive approach to setting the future course of the company.