Which one of the following statements concerning financial planning for a firm is correct?
A)Financial planning for fixed assets is done on a segregated basis within each division.
B)Financial plans often contain alternative options based on economic developments.
C)Financial plans frequently contain conflicting goals.
D)Financial plans assume that firms obtain no additional external financing.
E)The financial planning process is based on a single set of economic assumptions.

Question

Quizplus · Accepted Answer

Financial plans often include different scenarios based on various economic developments to provide flexibility and allow for contingency planning. The other options are incorrect as financial planning for fixed assets is typically done at a firm level, financial plans generally aim to reconcile conflicting goals, external financing is often required, and economic assumptions may be varied to test different scenarios.

Which One of the Following Statements Concerning Financial Planning for a Firm