A financial model is only as good as
A)the rate of growth in the economy.
B)the company's operating leverage.
C)the assumptions it uses and the data it uses.
D)None of the answers are correct.

Question

Quizplus · Accepted Answer

The accuracy and usefulness of a financial model depend on the assumptions and data used. The model should be based on realistic assumptions and reliable data to generate valid projections and insights. The rate of growth in the economy and the company's operating leverage may influence the model's outcomes but are not the primary factors determining its quality. Therefore, choice A and B are not the best options. Choice D is also incorrect as the question asks for the correct option(s), and there is at least one correct answer (C).

A Financial Model Is Only as Good as