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Financial plans generally tend to ignore which of the following?
Financial plans generally tend to ignore which of the following?1) Operating capacity levels
2) Managers' goals and objectives
3) Dividend associated with cash flows
4) Capital structure policy
Final answer:In financial planning, managers' goals and objectives are commonly overlooked as the firm's established strategies and the availability of financial information become more relevant to investors, diverging focus from the personal plans of individual managers.Explanation:Financial plans typically focus on various critical aspects of a firm's operations and strategic direction, such as capital investment decisions, revenue forecasting, expense budgeting, and cash flow management. However, there is a tendency to overlook managers' goals and objectives in the broader scheme of planning. This oversight occurs because, as a firm establishes itself and its strategy begins to generate profits, the direct knowledge ofindividual managers' plans and preferencesbecomes less crucial. The availability of information regarding the company's products, revenues, costs, and profits takes precedence, allowing investors who are not acquainted with the managers personally, such as bondholders and shareholders, to comfortably invest in the firm. Therefore, while factors like operating capacity levels, dividend policies related to cash flows, and capital structure policy are typically accounted for in financial planning, the personal goals and objectives of managers are often not given equal consideration....