14. Long-term financial plans (S30.4) True or false?

a. Financial planning should attempt to minimize risk.

b. The primary aim of financial planning is to obtain better forecasts of future cash flows and earnings.

c. Financial planning is necessary because financing and investment decisions interact and should not be made independently.

d. Firms’ planning horizons rarely exceed three years.

e. Financial planning requires accurate forecasting.

f. Financial planning models should include as much detail as possible.