One key reason a long-term financial plan is developed is because:
A) the plan determines your financial policy.
B) the plan determines your investment policy.
C) there are direct connections between achievable corporate growth and the financial policy.
D) there is unlimited growth possible in a well-developed financial plan.
E) None of these.

Question

Quizplus · Accepted Answer

A long-term financial plan is developed to establish a financial policy that aligns with the achievable corporate growth. This policy ensures that the business can successfully meet its long-term objectives and goals. The financial policy outlines the company's financial priorities, which may include investment decisions, cost management, and funding sources. By having a long-term plan in place, a company can make critical financial decisions with more confidence and security.

One Key Reason a Long-Term Financial Plan Is Developed Is