George Mariyajohnson
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Highers Accounting and Finance (Year 2) (Corporate Finance) Quiz on Lecture 5- Long term financial planning, created by George Mariyajohnson on 11/12/2020.

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George Mariyajohnson
Created by George Mariyajohnson almost 4 years ago
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Lecture 5- Long term financial planning

Question 1 of 29

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Many of firm’s capital expenditure is proposed by

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Question 2 of 29

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Company’s chief executive & specialists in areas such as , & are closely involved in process

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Question 3 of 29

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Final financial plan will be subject to approval by

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Question 4 of 29

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Planning horizon- horizon for

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Question 5 of 29

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Different possible outcomes that are often asked to model are: , &

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Question 6 of 29

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Financial plans help ensure that their financial are consistent with their . Also, they highlight financial necessary to support firm’s & goals

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Question 7 of 29

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One main category for why financial plans are built is . This is to formulate to inevitable

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Question 8 of 29

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Another main category for why financial plans are built is . need to think whether there are opportunities for company to its existing by moving to area (establishes firm in market & creates for possible value)

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Question 9 of 29

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Third main category for why financial plans are built is . Financial plans draw out between firm’s plan for & requirement. Financial plans must ensure firm’s are mutually

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Question 10 of 29

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One major component of financial planning model is . This includes financial & of key (such as sales or interest rates)

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Question 11 of 29

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Another major component of financial planning model is . This includes specifying key i.e. show how change in sales is likely to affect , working , fixed & requirements

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Question 12 of 29

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Third major component of financial planning model is . This includes financial (pro forma), ratios & & uses of

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Question 13 of 29

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Percentage sales model- model in which forecasts are driving & most other are assumed to be to

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Question 14 of 29

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Sales is force as it will define a lot of other i.e. level of fixed , costs, etc. However, assumption that other are assumed to be proportional to sales is

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Question 15 of 29

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Balancing item- that adjusts to maintain of plan. It's also called

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Question 16 of 29

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Plough-back ratio (b) =

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Question 17 of 29

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Internal growth rate- growth rate that can be with no of any kind, i.e.

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Question 18 of 29

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Sustainable growth rate- growth rate that can be with no while maintaining constant ratio

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Question 19 of 29

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One determinant of growth is . Increase in will increase therefore, increase . Higher the amount of , higher level of you can have in order to keep ratio constant

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Question 20 of 29

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Another determinant of growth is . Increase in this, increases generated by each unit in . This decreases need for new as grow hence, increases rate

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Question 21 of 29

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Third determinant of growth is . Increase in ratio makes additional financing available, in turn increases rate

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Question 22 of 29

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Fourth determinant of growth is . Decrease in increases hence, increases rate

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Question 23 of 29

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One caveat of financial planning models is financial planning models ignore , & . Financial planning rely on relationships not relationships

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Question 24 of 29

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Another caveat of financial planning models is financial planning should not be

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Question 25 of 29

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Third caveat of financial planning models is financial planning should be . Plans should be , & over & over

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Question 26 of 29

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One step involved in financial planning process is analysing & choices open to

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Question 27 of 29

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Another step involved in financial planning process is projecting future of current

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Question 28 of 29

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Another step involved in financial planning process is deciding which to

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Question 29 of 29

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Another step involved in financial planning process is measuring subsequent against set forth in plan

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