Asked by Michelle Kuruc on Jul 12, 2024
Verified
Which of the following would NOT fall under the heading of short-term financial planning?
A) A firm is considering increasing inventory to increase responsiveness to its customers.
B) A firm is considering steps to shorten its collection period.
C) A firm is considering making it easier for customers to purchase on credit.
D) A firm is considering offering cash discounts to customers if they pay within 10 days.
E) A firm is considering whether to pay a stock dividend or not.
Short-term Financial Planning
The process of identifying a company's immediate financial needs and devising strategies to meet those needs within a year or less.
Collection Period
The average number of days required to collect receivables from customers.
Stock Dividend
Payment made by a firm to its owners in the form of stock, diluting the value of each share outstanding.
- Acknowledge the repercussions of diverse financial approaches on a company's management of liquidity and cash assets.
Verified Answer
Learning Objectives
- Acknowledge the repercussions of diverse financial approaches on a company's management of liquidity and cash assets.
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