One of the primary weaknesses of many financial planning models is that they:
A) rely too much on financial relationships and too little on accounting relationships.
B) are iterative in nature.
C) ignore the goals and objectives of senior management.
D) are based solely on best case assumptions.
E) ignore the size, risk, and timing of cash flows.

Question

Quizplus · Accepted Answer

Ignoring the size, risk, and timing of cash flows can lead to inaccurate financial planning models, as these factors are critical in determining the feasibility and effectiveness of financial plans.

One of the Primary Weaknesses of Many Financial Planning Models