Final answer:
The question pertains to a business concept related to strategic planning or investing over a period, often with a horizon of three to five years or more, impacting investment decisions and corporate strategy.
Step-by-step explanation:
The phrase 'usually has a horizon of three to five years or more' typically refers to strategic planning or investing in a business context.
In strategic planning, a horizon is the period during which a strategic plan is set to be relevant and guide the decision-making process.
An example of a strategic planning horizon is when a company develops a resource that is expected to last for 40 years, and an Energy Return on Energy Invested (EROEI) analysis determines it would take approximately 4 years of the resource's energy output to bring it to fruition.
In terms of investing, one may consider different time horizons for investments to mature such as less than 10 years, between 10 and 20 years, and so on, up to more than 60 years.
This concept is relevant for various long-term financial commitments like mortgages, which typically span either 15 or 30 years.
Understanding the significance of time horizons in business can affect investment decisions, asset allocations, and overall corporate strategy.