Discuss at least one factor in a financial forecast that can be skewed through faulty analysis
People often use “the economy” as an excuse for poor financial forecasting. While it is true that economic factors outside of the control of any corporation can have a devastating effect on an organization’s financial forecast, a good analysis of the internal and external environment can eliminate many false predictions. Discuss at least one factor in a financial forecast that can be skewed through faulty analysis or through bias, and explain how a financial manager can avoid these pitfalls.
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