Which of the Following Is NOT One of the Steps

question 9

Multiple Choice

Which of the following is NOT one of the steps taken in the financial planning process?

• A) Monitor operations after implementing the plan to spot any deviations and then take corrective actions.
• B) Determine the amount of capital that will be needed to support the plan.
• C) Develop a set of forecasted financial statements under alternative versions of the operating plan in order to analyze the effects of different operating procedures on projected profits and financial ratios.
• D) Consult with key competitors about the optimal set of prices to charge, i.e., the prices that will maximize profits for our firm and its competitors.
• E) Forecast the funds that will be generated internally.If internal funds are insufficient to cover the required new investment, then identify sources from which the required external capital can be raised.

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Definitions:

Decision Polarization

The process through which an individual's choice becomes more extreme or pronounced after group discussion or exposure to persuasive arguments.

Peer Pressure

The influence exerted by a peer group in encouraging a person to change their attitudes, values, or behaviors in order to conform to group norms.

Utilitarian Influence

The impact of a product or service based on its practical benefits and usefulness.

Informational Influence

A form of social influence involving a change in beliefs or behavior in order to fit in with a group, based on the information or evidence provided by the group.