Which of the following questions are appropriate to address during the financial planning process?

Financial planning accomplishes which of the following for a firm? I. determination of asset requirements II. development of plans to contend with unexpected events III. establishment of priorities IV. analysis of funding options    A.  I and III only B.  II and IV only C.  I, III, and IV only D.  I, II, and III only E.  I, II, III, and IV

12.

Which of the following questions are appropriate to address during the financial planning process? I. Should the firm merge with a competitor? II. Should additional shares of stock be sold? III. Should a particular division be sold? IV. Should a new product be introduced?    A.  I, II, and III only B.  I, II, and IV only C.  I, III, and IV only D.  II, III, and IV only E.  I, II, III, and IV

13.

Which one of the following statements concerning financial planning for a firm is correct?    A.  Financial planning for fixed assets is done on a segregated basis within each division. B.  Financial plans often contain alternative options based on economic developments. C.  Financial plans frequently contain conflicting goals. D.  Financial plans assume that firms obtain no additional external financing. E.  The financial planning process is based on a single set of economic assumptions.

14.	You are getting ready to prepare pro forma statements for your business. Which one of the following are you most apt to estimate first as you begin this process?    A.  fixed assets B.  current expenses C.  sales forecast D.  projected net income E.  external financing need

15.

Which one of the following statements is correct?    A.  Pro forma statements must assume that no new equity is issued. B.  Pro forma statements are projections, not guarantees. C.  Pro forma statements are limited to a balance sheet and income statement. D.  Pro forma financial statements must assume that no dividends will be paid. E.  Net working capital needs are excluded from pro forma computations.