Why Are Long Range Predictions Considered Essential to Managing a Firm

question 9

Multiple Choice

Why are long range predictions considered essential to managing a firm?

• A) To develop plans for possible new plants.
• B) To have raw materials available for future demand
• C) To develop plans for future financing.
• D) To have enough staff for future needs.
• E) All of the choices are correct

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Definitions:

Rent Revenue

Income generated from leasing out property or equipment to another party.

Direct Method

A way of presenting a cash flow statement where actual cash flows from operating activities are disclosed directly.

IFRS

International Financial Reporting Standards, a set of accounting rules and standards that dictate how financial statements should be reported and are recognized globally.

GAAP

Stands for Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting.