CAIB 4 Exam Questions with CORRECT ANSWERs
Question : What are the similarities between a strategic plan
and an action plan?
CORRECT ANSWER : They are both critical steps in the
success of a brokerage They both flow from the mission statement They both use the same process (top down/bottom up)
Question : What are in the success of a brokerage
They both flow from the mission statement They both use the same process (top down/bottom up)
Question : What are the differences between a strategic plan
and an action plan?
CORRECT ANSWER : strategic plans are for three to five
years; action plans are for one year
strategic plans apply to the brokerage as a whole; action plans apply to a particular business unit
action plans are much more detailed than strategic plans
Question : Explain the advantages and disadvantages of top-
down and bottom-up approaches to planning.
CORRECT ANSWER : Top-Down Approach
- Management is firmly in control
- May fail because employees don't buy into it
Bottom-Up Approach
- Employees set the plan - buy-in
- Management feel that they are not in control
The combination of both approaches, with open communication throughout the process, is the key to effective and successful planning.
Question : When evaluating an operating affiliation why
would the differences between a strategic plan and an action plan?
CORRECT ANSWER : strategic plans are for three to five
years; action plans are for one year
strategic plans apply to the brokerage as a whole; action plans apply to a particular business unit
action plans are much more detailed than strategic plans
Question : Explain the advantages and disadvantages of top-
down and bottom-up approaches to planning.
CORRECT ANSWER : Top-Down Approach
- Management is firmly in control
- May fail because employees don't buy into it
Bottom-Up Approach
- Employees set the plan - buy-in
- Management feel that they are not in control
The combination of both approaches, with open communication throughout the process, is the key to effective and successful planning.
Question : When evaluating an operating affiliation why
would the following be an important consideration?
a) Exclus the following be an important consideration? a)
Exclusivity b) Fees
CORRECT ANSWER : Exclusivity;
Many of the organizations with which a brokerage can affiliate are in one way or another exclusive. Often it is this exclusivity that makes the organization attractive to the brokerage.
It is important that the following questions be asked; How many other brokerages inivity