Plans That Have an Intermediate Time Horizon and Are Concerned

question 61

Multiple Choice

Plans that have an intermediate time horizon and are concerned with getting things done are called ____ plans.

• A) strategic
• B) standing
• C) contingency
• D) tactical
• E) operational

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Definitions:

Short-Term Debt-Paying Ability

Refers to a company's capability to meet its short-term financial obligations as they come due.

Liquidity

A measure of how easily assets can be converted into cash without significant loss in value, important for meeting short-term obligations.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations on outstanding debt.

Interest Expense

The cost incurred by an entity for borrowed funds.