CAIB 4 Test Questions with Correct Answers
what is planning the key to?
success
what 8 things do brokerages need to do?
1. innovate
2. competitive pricing
3. manage risk
4. reward/ attract ideal employees
5.market to the right segments (product-market fit)
6. strategize
7. plan for the future
8. focus on profitability
what are the 4 characteristics of a plan?
1. simple
2. practical
3. severable
4. flexible
what is simple (characteristic of a plan)?
plan and outcome. easy to use and explain
what is practical (characteristic of a plan)?
a realistic plan (implementable)
what is severable (characteristic of a plan)?
, into parts with each unit responsible for their own
what is flexibility (characteristic of a plan)?
allows for changes
what are the 2 types of planning?
1. top down planning
2. bottom up planning
who decides on top down planning?
management decides (employee buy-in is hard)
what is bottom up planning?
business units are left alone to act
what 3 things does management give for bottom up planning?
1. mission
2. strategy
3. objectives/ goals
what method of planning lacks management control?
bottom up method
what is the best approach for planning?
both the top down and bottom up plus communication
what is an action plan?
specific activities for achieving strategic plans/ goals (1 year timeline) (business unit specific)
what is planning the key to?
success
what 8 things do brokerages need to do?
1. innovate
2. competitive pricing
3. manage risk
4. reward/ attract ideal employees
5.market to the right segments (product-market fit)
6. strategize
7. plan for the future
8. focus on profitability
what are the 4 characteristics of a plan?
1. simple
2. practical
3. severable
4. flexible
what is simple (characteristic of a plan)?
plan and outcome. easy to use and explain
what is practical (characteristic of a plan)?
a realistic plan (implementable)
what is severable (characteristic of a plan)?
, into parts with each unit responsible for their own
what is flexibility (characteristic of a plan)?
allows for changes
what are the 2 types of planning?
1. top down planning
2. bottom up planning
who decides on top down planning?
management decides (employee buy-in is hard)
what is bottom up planning?
business units are left alone to act
what 3 things does management give for bottom up planning?
1. mission
2. strategy
3. objectives/ goals
what method of planning lacks management control?
bottom up method
what is the best approach for planning?
both the top down and bottom up plus communication
what is an action plan?
specific activities for achieving strategic plans/ goals (1 year timeline) (business unit specific)
