Todd develops a plan for obtaining and using the money necessary for his company to implement its goals. This is called a(n)
A) credit policy.
B) capital budget.
C) operational plan.
D) financing agreement.
E) financial plan.

Question

Quizplus · Accepted Answer

A financial plan is specifically designed to detail how a company will obtain and allocate the necessary funds to achieve its objectives. A credit policy relates to how a company will extend or receive credit, a capital budget outlines expenditures for long-term assets, an operational plan identifies how day-to-day activities will be carried out, and a financing agreement is a specific contract for obtaining or repaying funds.

Todd Develops a Plan for Obtaining and Using the Money