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One Basic Weakness of the Simplified Pro Forma Approaches Lies

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One basic weakness of the simplified pro forma approaches lies in the assumption that certain variables, such as cash, accounts receivable, and inventories, can be forced to take on certain "desired" values.


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Factor-Analysis

A statistical method used to identify clusters or groups of related items (factors) within a large set of variables, often used in psychological research to identify underlying dimensions of personality or intelligence.

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