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

question 63

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 environmental data and extrapolates current trends.
• 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.

---

Definitions:

Consolidated Income Tax Return

A single income tax return filed by a parent company and its subsidiaries, considered as one entity for tax purposes.

Intra-entity Transfers

Transfers of goods, services, or assets between divisions or units within the same company.

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.

Foreign Corporation

A company that is incorporated under the laws of a country different from the country of its primary operations.