Final answer:
A fiscal year is 12 months used for preparing financial reports and is crucial for companies' strategic planning and funding of research and development projects.
Step-by-step explanation:
A 12-month period for which financial reports are prepared is known as a fiscal year. This specified period is essential for companies as it not only sets the timeframe for budgeting and accounting but also influences strategic planning and operations.
It is particularly relevant in the context of promoting research and development. Aligning the fiscal year with the lifecycle of projects can ensure that these initiatives receive the necessary funding and attention, ultimately leading to innovations that can benefit many. By having a consistent annual period, such as the fiscal year, businesses can better assess their financial performance and make informed decisions going forward.