Which of the Following Statements About fiNancial Planning Is NOT

question 267

Multiple Choice

Which of the following statements about financial planning is NOT correct?

• A) Financial planning provides a poor way of checking that the goals and plans made with regard to specific areas of a firm's operations are feasible and internally consistent.
• B) The financial plan provides the opportunity for the firm to develop, analyze, and compare many different scenarios in a consistent way.
• C) A financial plan makes explicit the consistency between planned growth and stated financial policies.
• D) One of the purposes of financial planning is to avoid surprises and develop contingency plans.
• E) Growth, by itself, is not an appropriate goal for the financial manager.

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Definitions:

Normal Distribution

A symmetric, bell-shaped distribution of data where most of the observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.

Symmetric

Describes an object or figure that is identical on both sides of a central dividing line.

Probability Density Function

A function that outlines the likelihood of finding a random variable within a particular range of values.

Uniform Distribution

is a type of probability distribution where every outcome in a certain range is equally likely to occur.