Portable Pet Care, Inc., a mobile veterinary clinic, is planning for the future. The company owners (two seasoned veterinarians) have brought together the vice president of marketing and the director of information systems to talk about their expansion campaign, "We come to you!" The talks are in the preliminary stages, so there is no need to concern the finance team at this time because cash flow is currently not a problem.

Question

Quizplus · Accepted Answer

Forecasting for the future is an important part of any firm's strategic plan. If a firm is planning to expand, it is important to begin creating long-term forecasts, where the firm predicts revenues and expenses for periods longer than one year, sometimes 5 to 10 years out.