Which of the Following Are a Weakness of Financial Planning

question 29

Multiple Choice

Which of the following are a weakness of financial planning models?

• A) Interest expense is not accounted.
• B) All working capital accounts do not necessarily vary directly with sales, especially cash and inventory.
• C) The way fixed assets are handled as lumpy assets, leaving the company with excess capacity.
• D) All of these

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Definitions:

Volcano

A rupture in the planet's crust through which molten lava, ash, and gases are ejected or flowed from a magma chamber.

Numeric Ages

Ages or dates assigned to geological events or rock formations expressed in years, often determined through radiometric dating.

Magnetic Reversals

Occurrences where the Earth's magnetic field switches direction, swapping the magnetic north and south poles.

Numeric Ages

Refers to the actual number of years that have passed since a particular geological event or the formation of a rock.