Which of the Following Statements Is Not True Regarding Financial

question 13

Multiple Choice

Which of the following statements is not true regarding financial planning models?

• A) They should include as much detail as possible.
• B) The results of a model are pro forma financial statements.
• C) The plug variable maintains consistency.
• D) Financial analysis is not used in financial planning.

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Definitions:

Induced Compliance

A psychological phenomenon where individuals change their attitudes or beliefs to align with their externally influenced behaviors, especially in situations causing cognitive dissonance.

Dissonance Reduction

A psychological process by which individuals reduce the discomfort (dissonance) caused by conflicting beliefs, values, or attitudes, often by changing or rationalizing them.

Counterattitudinal Behavior

Engaging in behavior that is inconsistent with one's beliefs, attitudes, or values.

Induced Hypocrisy

A psychological state induced when individuals are made aware of a discrepancy between their attitudes and behaviors, leading to discomfort and a potential change in behavior.