The Most Important Function of a Short-Term Financial Plan Is

question 24

Multiple Choice

The most important function of a short-term financial plan is

• A)to develop a cash budget.
• B)to cover the forecasted requirements in the most economical way possible.
• C)to help develop the long-term financial plan.
• D)None of these answers are correct.

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Definitions:

Private Markets

Markets where transactions occur directly between parties without public exchange involvement, often characterized by less regulation.

Socially Optimal Level

A state of resource allocation where the benefits to society are maximized, considering all externalities.

Excise Tax

A tax levied on specific goods or services, such as alcohol, tobacco, and gasoline, usually to discourage their use or to generate revenue.

Negative Externality

A cost that affects a party who did not choose to incur it, often associated with the consumption or production of goods and services.