Simulation Models Allow the Planner to

question 58

Multiple Choice

Simulation models allow the planner to

• A) reduce the standard deviations of projects.
• B) plan ahead for all possible changes in each variable.
• C) deal with the uncertainty of investment risk.
• D) test possible changes in each variable and deal with the uncertainty in forecasting outcomes.

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Definitions:

Financial Budgets

Detailed plans that outline an organization's financial goals and the strategies to achieve them, including projections of income, expenses, and cash flow.

Operating Budgets

An operating budget details the forecasted revenue and expenses for the day-to-day operations of a company for a specific period.

Long-range Planning

Long-range Planning involves setting goals and determining strategies for achieving them over an extended period, often three to five years into the future, to guide sustainable business growth.

Long-range Plans

Strategic plans that encompass a broad vision and long-term goals of an organization, typically extending several years into the future.