Which of the following statements about financial planning is most correct? a. The planning process...

Which of the following statements about financial planning is most correct?

a. The planning process typically takes place in January and February.

b. The financial plan is created independently of the business’s strategic plan.

c. The financial plan is created independently of the business’ operating (five-year) plan.

d. The financial plan is part of the administration and human resources plan.

e. None of the above statements are correct.

Solutions

Expert Solution

a. The planning process typically takes place in January and February.

Not Correct : Financial planning is a process which is typically process which requires a periodical review. So it is incorrect to state that such process typically takes place in January and February.

b. The financial plan is created independently of the business’s strategic plan.

Not Correct : Business Strategic Planning includes overall Mission, Vision and Aspirations of the organization. It's a strategy to achieve overall goal of business. Any plan created for organization must be in scope as defined in the Business strategic Plan. So financial plan can be crated independently of the Business Strategic Plan.

c. The financial plan is created independently of the business’ operating (five-year) plan.

Not Correct : Business Operating Plan provides outline or scope for the human, financial and physical resources allocation for short term goals to achieve long term goals. So your financial plan should also be congruent with the medium and long term operating plan.

d. The financial plan is part of the administration and human resources plan.

Not Correct : Administration and human resources planning helps organization to deploy have right employees in right numbers to achieve it's goals. Financial planning is one of the process that helps organization to deploy it's financial resources to achieve overall organizational goals.Thee two process work together but financial process is not part of administration and human resources plan.

e. None of the above statements are correct.

Correct: As non of the options above provides correct statement regarding financial planning.

jeff jeffy answered 4 weeks ago

Next > < Previous

Related Solutions

Which of the following statements about financial planning is not true?

Which of the following statements about financial planning is not true? Financial planning process is a series of decisions on how much money you will need at some future time to meet your goals and how you will obtain the money To meet your goals, you must balance the equation: Financial goal = present savings (FVIF n, k) + annual savings (FVIFA n, k) Once you have a financial plan in place, you need to review it only every few...

Which of the following statements is most CORRECT? a. Financial theory says that the choice of...

Which of the following statements is most CORRECT? a. Financial theory says that the choice of how to pay for a merger is really irrelevant because, although it may affect the firm's capital structure, it will not affect its overall required rate of return. b. The basic rationale for any financial merger is synergy and, thus, the estimation of pro forma cash flows is the single most important part of the analysis. c. In most mergers, the benefits of synergy...

Which of the following statements is most correct?

Which of the following statements is most correct? A. Decrease in accounts payable is a use of cash. B. Increase in long-term debt is a use of cash. C. Increase in inventory is a source of cash D. Decrease in notes payable is a source of cash E. Increase in accounts receivable is a source of cash

Which of the following statements about the corporate cost of capital is most correct? A Because...

Which of the following statements about the corporate cost of capital is most correct? A Because the use of debt financing increases a business’s financial risk, increasing the debt ratio will always increase the corporate cost of capital. B Because debt financing is less costly than equity financing, increasing the debt ratio will always reduce the corporate cost of capital. C Increasing the debt ratio typically will reduce the marginal cost of both debt and equity; however, it still may...

Which one of the following statements is most correct about eurocurrencies? They are traded within the...

Which one of the following statements is most correct about eurocurrencies? They are traded within the country of their denomination. They are traded outside the country of their denomination. They are traded primarily outside of Europe. They are traded primarily in Europe. They are always issued in euros.

Which of the following statements about insurance plans and premium rate setting is most correct? A...

Which of the following statements about insurance plans and premium rate setting is most correct? A Insurers set premium rates to include both the costs of providing healthcare services and the costs of providing (administering) the insurance plan, including profits. B A single method is used to set premium rates: the fee-for-service approach. C A single method is used to set premium rates: the cost approach. D Although premiums may be set using several different methods, healthcare providers are all...

Which one of the following statements is most correct about eurocurrencies? They are traded primarily outside...

Which one of the following statements is most correct about eurocurrencies? They are traded primarily outside of Europe. They are traded within the country of their denomination. They are always issued in euros. They are traded primarily in Europe. They are traded outside the country of their denomination. Which one of the following statements is correct about reinvoicing centers? They are commonly used by small firms They are subsidiaries of muntinational corporations and they consolidate currency hedging They add a...

Which of the following statements about convertibles is most CORRECT? a. One advantage of convertibles over...

Which of the following statements about convertibles is most CORRECT? a. One advantage of convertibles over warrants is that the issuer receives additional cash money when convertibles are converted. b. Investors are willing to accept a lower interest rate on a convertible than on otherwise similar straight debt because convertibles are less risky than straight debt. c. At the time it is issued, a convertible's conversion (or exercise) price is generally set equal to or below the underlying stock's price....

Which of the following statements are correct about a sample weighting process? Select all that apply....

Which of the following statements are correct about a sample weighting process? Select all that apply. A. Respondents are weighted in terms of their answers to the survey questions. B. The process is to correct survey data for any possible sampling biases. C. The sample is checked against known demographic characteristics of the adult population. D. Respondents are weighted in terms of their demographic characteristics such as race, age and gender.

Which of the following statements is(are) correct? A. Hemostasis is the process by which the body...

Which of the following statements is(are) correct? A. Hemostasis is the process by which the body spontaneously stops bleeding and maintains blood in the fluid state within the vascular compartment B. Hemostasis is divided into two stages: primary and secondary C. Normal vascular endothelial cell surface is thromboresistant (or antithrombotic) D. All of the above

Subjects