A firm that provides tax services to the public intends to offer a premium tax-return service at a higher price than their current services. The managers of the company ask experts in marketing to determine how much an effective ad campaign for such a service would cost, and by how much sales would be increased. They consult experts in economics to calculate the increases in revenue from the success of the campaign, experts in operations to determine the cost of offering the service, and experts in strategy to anticipate possible countermoves by competitors. This example illustrates which of the following points about the role of financial managers?

Question

Quizplus · Accepted Answer

The example given in the passage illustrates the complex decision-making process that financial managers must engage in, and the need for input from multiple sources to make informed decisions. It also suggests that financial managers must consider both costs and potential benefits when making decisions, and that it may not always be possible to identify all costs and benefits associated with a decision. However, the passage does not suggest that financial managers have ultimate decision-making authority, as that may depend on the organizational structure and decision-making processes within a particular company.

A Firm That Provides Tax Services to the Public Intends