Asked by Courtney Coffman on Jul 07, 2024
Verified
A benefit of compiling a short-term financial plan is knowing ahead of time when your firm will probably require external financing.
Short-Term Financial Plan
A strategy focusing on managing current liabilities and assets to meet short-term operational and financial goals.
External Financing
Funding acquired from sources outside the company, such as loans, stock issues, or bonds.
- Comprehend the principle and significance of cash budgeting within financial management.
- Identify the various types of short-term funding and understand their impact on financial strategy.
Verified Answer
GH
Gisselle HernandezJul 09, 2024
Final Answer :
True
Explanation :
A short-term financial plan helps in forecasting upcoming cash flows and financial needs, allowing a firm to anticipate when it will need external financing.
Learning Objectives
- Comprehend the principle and significance of cash budgeting within financial management.
- Identify the various types of short-term funding and understand their impact on financial strategy.
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