A fiRm Is Preparing a Short-Term fiNancial Plan

question 41

Multiple Choice

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.

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Definitions:

Organization Design

The process of structuring an organization’s roles, responsibilities, and systems to effectively achieve its goals and objectives.

Artifacts

Physical objects, symbols, or expressions that represent the culture or values of a society, organization, or group.

Procedures

Established or official ways of doing something, typically involving a series of actions or steps to be followed in a consistent order.

Potential

An individual's or entity's inherent ability or capacity to develop, grow, and achieve success in the future.