Which of the following is NOT one of the steps taken in the financial planning process?
A)Forecast financial statements and use these projections to analyze the likely effects of the operating plan on profits and various financial ratios.
B)Forecast the funds that will be needed to support the 5-year plan.
C)Develop a cash budget for use in determining when funds will be needed or when surplus funds will be available for investment.
D)Consult with key competitors about the optimal set of prices to charge, i.e., the prices that will maximize profits for our firm and its competitors.

Question

Quizplus · Accepted Answer

Consulting with key competitors about pricing strategies is not a step in the financial planning process, as it raises ethical and legal concerns related to antitrust laws. The other options listed are essential steps in financial planning, including forecasting financial statements, projecting funding needs, and developing a cash budget.

Which of the Following Is NOT One of the Steps