Which of the Following Is NOT One of the Steps

question 30

Multiple Choice

Which of the following is NOT one of the steps taken in the financial planning process?

• A) Monitor operations after implementing the plan to spot any deviations and then take corrective actions.
• B) Determine the amount of capital that will be needed to support the plan.
• C) Develop a set of forecasted financial statements under alternative versions of the operating plan in order to analyze the effects of different operating procedures on projected profits and financial ratios.
• D) Consult with key competitors about the optimal set of prices to charge, i.e., the prices that will maximize profits for our firm and its competitors.
• E) Forecast the funds that will be generated internally.If internal funds are insufficient to cover the required new investment, then identify sources from which the required external capital can be raised.

---

Definitions:

Gift

An item given to someone without the expectation of payment or anything in return.

Water and Diamond Paradox

A classic economic paradox questioning why diamonds are more expensive than water, despite water being essential for survival and diamonds not.

Product Usefulness

The degree to which a consumer believes a product will be able to satisfy their needs, goals, and desires through its features and performance.

Consumer Spending

The total expenditure by households and individuals on goods and services within a specific time period.