The Finance Department Should Work Independently Without the Input of Other

question 67

True/False

The finance department should work independently without the input of other departments because there may be significant biases when creating proformas.

---

Definitions:

Financial Assets

Instruments that hold monetary value, such as stocks, bonds, or bank deposits, which can be traded in financial markets.

Term

Refers to a specific period of time or to conditions stipulated for a particular agreement or contract.

Interest Rate

The price, shown in the form of a percentage of the principal, charged by lenders to borrowers for asset employment.

Diversify

The attempt to spread investment risk by selecting a variety of investment options within a portfolio.