Which of the following are benefits derived from short-term financial planning?
I.having advance notice of when your firm will require external financing
II.being able to determine the extent of time for which a loan is required
III.having the ability to time capital expenditures in order to place the least financial burden possible on a firm
IV.knowing for certain what your cash balance will be six months in advance

Question

Quizplus · Accepted Answer

Short-term financial planning helps in forecasting the need for external financing, determining the duration for which a loan is needed, and timing capital expenditures to minimize financial strain. However, it does not guarantee knowing the exact cash balance in advance due to the inherent uncertainties in business operations.

Which of the Following Are Benefits Derived from Short-Term Financial