1. Which of the following statements is not true of short-term financial planning?
The plan should consider possible shortfalls in sales or a delay in collections.
The plan seeks to ensure that the company will be able to meet its cash needs.
The planning period is typically five years.
The plan needs to be based on the best forecasts available.
2. Holdings of marketable securities are at worst zero-NPV investments for taxpaying firms.
True or False
3. Managers with a large surplus of cash are often tempted to run a less tight ship.
True or False