Question

The​ ________ planning phase emphasizes time horizons of one​ year; whereas the​ ________ planning phase focuses on time horizons of​ three-to-five years with no help from consultants.

Answer 1

The​ basic financial planning phase emphasizes time horizons of one​ year; whereas the​ forecast-based planning phase focuses on time horizons of​ three-to-five years with no help from consultants. The comprehensive evaluation current and future financial condition by using currently known variables in predicting future cash flows, withdrawal plans and assets is called basic financial planning. While forecasting uses management's experience, knowledge and judgement as a basis for certain assumptions.