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Questions and Answers
Short-run planning usually covers the coming 24 months.
False
Aggregation involves determining individual projects and adding them up to form one big project.
True
Financial planning is not particularly important for cyclical businesses.
False
Financial planning allows firms to develop, analyze, and compare different business scenarios in a disorganized manner.
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Financial planning is the process of determining how to achieve financial goals.
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Growth is the ultimate goal of financial management.
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The financial plan should explicitly show the linkages between investment proposals and the firm's financing choices.
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A financial plan is a statement of past actions.
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In an uncertain world, financial decisions may need to be made far in advance.
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Growth is never used as a means to summarize a firm's financial and investment policies.
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