The long-term financial forecast gives top management some sense of the profit potential of various strategic decisions.

Question

Quizplus · Accepted Answer

The long-term financial forecast provides estimates of future revenues, expenses, and profits, and helps managers make informed investment and financing decisions. By analyzing these forecasts, top management can evaluate the profit potential of various strategic decisions and choose the option that generates the greatest value for shareholders. Therefore, the statement is true.

The Long-Term Financial Forecast Gives Top Management Some Sense of the Profit