Types of Plans That Businesses Typically Use to Guide Their

question 65

Multiple Choice

Types of plans that businesses typically use to guide their operations include

• A) strategic plans.
• B) long-range financial plans.
• C) short-range financial plans.
• D) all of the above.

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Definitions:

Net Present Value

The contrast in the present value of money received and the present value of money spent over a designated duration, applied in capital budgeting to appraise the profitability of a potential investment.

Cash Inflows

Refers to the money received by a business from its various activities, including sales, investments, financing, etc.

Initial Cost

The upfront expenditure required to purchase an asset or to start a project, including setup or installation fees.

Initial Outlay

The initial investment amount required to start a project or purchase an asset.