Final answer:
The statement that all managers plan, whether formally or informally, is true. Formal and informal planning processes differ, but both are inherent to management roles. As a company establishes itself and its performance metrics are widely available, personal knowledge of managers becomes less critical to investors.
Step-by-step explanation:
The statement concerning whether all managers plan in some way, either formally or informally, is true. Planning is a fundamental management function and can vary from structured, strategic plans to more casual, informal planning. While formal planning involves a defined process with specific objectives and methodologies, informal planning might occur as ad-hoc thoughts and adjustments based on immediate circumstances.
In the context of a firm becoming established, as information about the company's products, revenues, costs, and profits becomes more readily accessible, the need to know the business plans or managers personally diminishes. This wider availability of information provides a level of transparency that can inspire confidence in outside investors, such as bondholders and shareholders, to provide financial capital to the firm without the necessity of personal acquaintance with the management team. Hence, well-documented and publicized corporate performance metrics supplement the need for personal relationships with investors.