Answer:
The answer would be, long-term financial needs
Explanation:
Financial managers maintain a firm’s financial health by developing long-term investment activities and financing strategies. In order to develop these long-term investments and financing activities, financial managers conduct data analysis and offer advice to senior management on ideas that can maximize the firm’s profits. Moreover, financial managers develop direct investment activities, financial reports, and formulate plans and strategies to achieve the long-term financial goals of a company.
Answering the question, finance managers spend the majority of their time managing short-term financial needs.
Short time finance can be defined as finance needs for a short period. The short period is usually not up to a year. In many businesses, short term finance is also called working capital financing.
Businesses need short time finance to take care of the uneven flow of cash, and for most firms, short term finance is used to finance all kinds of inventory and many more.
There are different types of short term financing and these include:
Trade credit: firms can get also receive credits from their suppliers or manufacturers. This type of credit is called trade or mercantile credit. The duration of the credit usually lasts between 30 and 90 days. A firm can access trade credit upon opening an account with their suppliers.
Short term loans: firms can also take advantage of short terms loans. This type of short term financing can be granted by banks or other financial institutions.
Business line of credit: it is regarded as the most suitable of all the types of short term financing. It is a type of short term financing in which a certain amount is approved by a financial institution. The firm will have to make a deposit anytime their customers make a payment to the firm.
LEARN MORE:
KEYWORDS:
