A Difference Between Basic Financial Planning and Forecast-Based Planning Is

question 8

Multiple Choice

A difference between basic financial planning and forecast-based planning is

• A) the time horizon is shorter in forecast-based planning.
• B) forecast-based planning incorporates internal and external information.
• C) basic financial planning utilizes consultants with sophisticated techniques.
• D) basic financial planning utilizes scenarios and contingency strategies.
• E) basic financial planning relies heavily on input from lower levels in the organization.

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Definitions:

Stock Dissipation Rate

The rate at which a particular stock (such as a natural resource) is reduced due to its use or consumption.

Current Emissions

The amount of pollutants or greenhouse gases released into the atmosphere in a given period of time.

Pollutants

Substances that contaminate the environment, causing harm to ecosystems and human health, including chemicals, noise, and waste products.

Stock Externality

Accumulated result of action by a producer or consumer which, though not accounted for in the market price, affects other producers or consumers.