Lauren is a financial manager. As a member of her company's middle management team, her job is to ensure that the company has adequate cash to make required payments and to find good short-term investment opportunities when her company temporarily has more cash than necessary. Her efforts include developing a cash budget for the next year to identify when the company might have surpluses or shortages of cash. What type of planning does this example illustrate?

Question

Quizplus · Accepted Answer

This example illustrates tactical planning, which involves short-term planning to allocate resources and achieve specific goals. Lauren's role in developing a cash budget for the next year and seeking short-term investment opportunities falls under this category. Operational planning focuses on day-to-day activities, contingency planning involves planning for unexpected events, and strategic planning involves long-term planning to achieve overall company objectives.

Lauren Is a Financial Manager