When firms prepare a financial plan they use the following:
I. develop several financial plans using most likely outcomes and also unexpected outcomes.
II. sensitivity analysis.
III. scenario analysis.

Question

When firms prepare a financial plan they use the following:
I. develop several financial plans using most likely outcomes and also unexpected outcomes. 
II. sensitivity analysis.
III. scenario analysis.

Quizplus · Accepted Answer

When firms prepare a financial plan, they develop several financial plans using most likely outcomes and also unexpected outcomes. It is important to conduct sensitivity analysis and scenario analysis to evaluate different scenarios and assess the impact of various factors. Therefore, all three options are used to prepare a financial plan.

When Firms Prepare a Financial Plan They Use the Following