The financial plan is a tool with which to manage the company and not to necessarily motivate desirable performance.Select one:TrueFalse

The statement "The financial plan is a tool with which to manage the company and not to necessarily motivate desirable performance" can be analyzed in the context of financial management principles.

Analysis

1. Understanding Financial Plan: A financial plan typically outlines a company's financial strategy, including budgets, forecasts, and funding requirements. It serves as a roadmap for managing resources.

2. Management vs. Motivation: While financial plans are essential for managing operations, their primary purpose is not to motivate performance but to ensure that the company's financial resources are allocated effectively.

3. Conclusion: The role of a financial plan can certainly include aspects of performance motivation, especially when aligned with performance metrics, but its fundamental purpose is resource management.

Final Answer

False. The primary purpose of a financial plan is to manage the company rather than to motivate performance.