Suppose That in the Control Phase of the Financial Planning

question 62

Multiple Choice

Suppose that in the control phase of the financial planning process a firm discovers it cannot raise the funds that are required to meet the forecasted sales. In this situation, the firm should ______. 

• A)use available cash to repay as many outstanding loans as possible
• B)scale back its projected level of operations
• C)expand its plant and equipment to the level necessary to meet the sales forecast
• D)build up its inventory quickly
• E)reformulate its plans to increase retained earnings and to decrease the dividend payments to stockholders

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Definitions:

Spatial Reasoning

The ability to visualize and manipulate objects and their relationships in space.

Howard Gardner

An American developmental psychologist best known for his theory of multiple intelligences, which suggests that intelligence is not a single innate ability but rather a combination of multiple distinct types of intelligences.

Heritability

The proportion of variation among individuals that we can attribute to genes.

Genetic Influences

Factors determined by one's genes that affect physical traits, behaviors, and health outcomes.