Which of the Following Statements Is Not True of Short-Term

question 72

Multiple Choice

Which of the following statements is not true of short-term financial planning?

• A) The plan should consider possible shortfalls in sales or a delay in collections.
• B) The plan seeks to ensure that the company will be able to meet its cash needs.
• C) The planning period is typically five years.
• D) The plan needs to be based on the best forecasts available.

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Definitions:

Conscientiousness

A personality trait characterized by diligence, carefulness, and the desire to do a task well, often linked to high levels of responsibility and dependability.

Job Performance

The level of effectiveness and efficiency with which an individual or group fulfills their work-related tasks and responsibilities.

Leadership Capacity

The potential or ability for individuals to lead effectively, often developed through experience, training, and personal growth.

Variable Cost

Expenses that change in proportion with the level of production or sales volume, such as raw materials and direct labor costs.