A Danger of Forecasting Discussed in the Text Is That

question 63

Multiple Choice

A danger of forecasting discussed in the text is that

• A) in most cases, the expense of collecting the necessary data exceeds the benefit
• B) forecasting's retrospective nature provides little information about the future
• C) managers may view uncertainty as "black and white" while ignoring important "grey areas"
• D) it can create legal problems for the firm if regulators discover the company is making forecast

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Definitions:

Retirement Plan

A financial strategy designed to provide individuals with income or assets to rely on after they have ceased working, often involving savings, investments, and other financial products.

Compounded Semi-annually

This refers to the practice of applying interest to an existing amount plus any accumulated interest twice yearly.

Monthly Mortgage

A regularly scheduled payment which includes principal and interest owed on a mortgage.

Loan Payment

A payment made to reduce the outstanding balance of a loan, often made on a monthly basis.