Which of the following is NOT one of the steps taken in the financial planning processσ
A) monitor operations after implementing the plan to spot any deviations and then take corrective actions.
B) determine the amount of capital that will be needed to support the plan.
C) develop a set of forecasted financial statements under alternative versions of the operating plan in order to analyze the effects of different operating procedures on projected profits and financial ratios.
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.
E) forecast the funds that will be generated internally. if internal funds are insufficient to cover the required new investment, then identify sources from which the required external capital can be raised.

Question

Quizplus · Accepted Answer

Consulting with key competitors about pricing strategies is not a typical step in the financial planning process. It may even be considered illegal and unethical as it could potentially violate antitrust laws. The other steps listed (monitoring operations, determining capital needs, developing forecasted financial statements, and forecasting funds) are all part of the financial planning process.

Which of the Following Is NOT One of the Steps