Inaccurate Cash Flow Estimates Originate from Several Sources

question 135

Multiple Choice

Inaccurate cash flow estimates originate from several sources. The most significant of these is:

• A)estimating errors made by unbiased financial analysts.
• B)estimating errors made by unbiased managers in the departments proposing projects.
• C)unintentionally biased estimates made by impartial financial analysts.
• D)errors due to the biases of managers in the departments proposing projects.

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Definitions:

Concessions

Compromises made by negotiating parties where one or more participants agree to make a change in their position to reach an agreement.

Bargaining Positions

The stance or demands made by negotiating parties as starting points for negotiations.

Negotiate

The process of discussing to reach an agreement or compromise between parties with differing views.

Choice

The act of selecting between two or more possibilities.