Which of the following questions is LEAST relevant to a financial mana

QUESTION

Which of the following questions is LEAST relevant to a financial manager as he or she develops a financial forecast for Aardvark?

A) What are the future plans of the company?
B) What is the current state of the local economy?
C) What is the future state of the local economy likely to be?
D) What subcontractors should the company use?
E) What is the company’s competition likely to do?

ANSWER

Answer: D
Explanation: D) Which subcontractors to hire is a choice that would be up to those who deal directly in whatever business the company subcontracts to other companies, and not directly the province of financial forecasting. The company’s future plans (Choice A), the state of the local economy (Choices B and C), and the company’s competition (Choice E), however, are fully relevant to developing a financial forecast.