Long-term financial planning allows a financial manager to understand the business by ________ between sales, costs, capital investments and financing.
A)increasing the spread between
B)decreasing the spread between
C)identifying wastage
D)identifying linkages

Question

Quizplus · Accepted Answer

Long-term financial planning involves identifying linkages between various aspects of a business such as sales, costs, capital investments, and financing. This helps financial managers understand the business better and make informed decisions to optimize its financial performance. Identifying wastage is a separate process that involves minimizing unnecessary expenses and improving operational efficiency. Increasing or decreasing the spread between different financial aspects may not always be desirable or feasible, and should be done on a case-by-case basis after careful analysis.

Long-Term Financial Planning Allows a Financial Manager to Understand the Business