Which of the Following Is the Most Important Ingredient of the Financial

question 44

Multiple Choice

Which of the following is the most important ingredient of the financial planning process of a firm?

• A) Expense forecast
• B) External financing forecast
• C) Sales forecast
• D) Internal fund generation forecast
• E) Capital requirements forecast

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Definitions:

External Cost

Uncompensated costs that individuals or firms impose on others outside of market transactions, often associated with pollution.

Pollution Tax

A financial charge imposed on the emission of pollutants, intended to motivate reductions in harmful environmental discharges.

Unit of Production

A single complete item or a specified amount of a commodity produced.

Positive Externality

An economic situation where a third party benefits from a transaction or activity they are not directly involved in.