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A financial executive devotes the most time to

A. long-range planning.

B. capital budgeting.

C. short-term financing.

D. working capital management.

asked
User Gale
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8.2k points

1 Answer

6 votes

Final answer:

A financial executive typically devotes the most time to long-range planning. This task includes making strategic decisions for the firm's future growth, which may involve acquiring new assets and facilities, and choosing how to effectively raise financial capital.

Step-by-step explanation:

The question pertains to the responsibilities and the allocation of time by a financial executive within a firm. These professionals often have to balance various tasks, which may include long-range planning, capital budgeting, short-term financing, and working capital management. However, amongst these tasks, a significant amount of a financial executive's time is often dedicated to long-range planning. This endeavor involves strategizing for the future growth of the company by making significant decisions that require substantial investment and are crucial for the firm's long-term success. Examples of long-range planning include the acquisition of capital assets like machinery and the construction of new facilities, which involve raising financial capital through methods such as sourcing from early-stage investors, reinvesting profits, securing loans from banks or bonds, and selling stock. As the company becomes more stable, the reliance on these different financial capital sources changes, and a greater emphasis is placed on investors who are more detached from day-to-day management, such as bondholders and shareholders.

answered
User Robyaw
by
8.5k points
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