Which of the following companies is most likely to have the greatest need for short-term financial planning?
A) a company that mines sand for use in glass-making
B) a company that manufacturers condiments such as ketchup
C) a company that produces advertisements for roadside billboards
D) a company that provides catering services for weddings

Question

Quizplus · Accepted Answer

Catering services for weddings are typically booked well in advance, and the company would need to manage cash flow to cover expenses until they receive payment for their services. This makes them more likely to require short-term financial planning. Companies that manufacture products such as sand for glass-making or condiments like ketchup likely have more consistent revenue streams and may not face the same level of cash flow variability. Advertising production may have some short-term projects, but these often involve contracts and deposits, which help manage cash flow.

Which of the Following Companies Is Most Likely to Have