A firm is preparing a short-term financial plan. One question the firm would most likely NOT address is ______________________.

A) How much cash should be kept on hand.
B) How much short-term borrowing should be employed.
C) What is the optimal level of long-term unsecured credit.
D) How long should credit be extended to customers.
E) Should the firm issue commercial paper.

Long-term Unsecured Credit

A type of loan given based on the borrower's creditworthiness without the need for collateral, typically with a repayment period beyond one year.

Commercial Paper

A short-term, unsecured debt instrument issued by companies to finance their immediate operational needs.

Short-term Borrowing

Loans or debt obligations that are expected to be paid back within a short period, typically less than one year, often used for operational expenses.