Which of the following would NOT fall under the heading of short-term financial planning?
A) A firm is considering increasing inventory to increase responsiveness to its customers.
B) A firm is considering steps to shorten its collection period.
C) A firm is considering making it easier for customers to purchase on credit.
D) A firm is considering offering cash discounts to customers if they pay within 10 days.
E) A firm is considering whether to pay a stock dividend or not.

Question

Quizplus · Accepted Answer

Short-term financial planning typically involves decisions that affect a company's operations within a year or less, such as managing inventory, credit terms, and collection periods. Paying a stock dividend is a decision related to the distribution of profits and shareholder returns, which falls under long-term financial planning and strategic decision-making.

Which of the Following Would NOT Fall Under the Heading