Question

Ruby heads Soleil Solutions’ finance department. She is investigating ways the business is evolving, and how the firm can stay competitive over the next few years. As part of this effort, Ruby looks at emerging technologies and considers various investment timelines for upgrades. Which step in financial planning is Ruby involved in?

Answer 1

Ruby is involved in strategic financial planning at Soleil Solutions, considering how to use emerging technologies and investment timelines to maintain competitiveness.

Step-by-step explanation:

Ruby from Soleil Solutions' finance department is engaged in the process of strategic financial planning. This involves examining how the business can evolve and remain competitive, which includes assessing emerging technologies and considering investment timelines for technological upgrades and other improvements. Strategic financial planning is crucial as it involves making decisions about firm's investments in assets that could last many years such as buying new machinery, constructing new plants, or initiating research and development projects. Firms can raise the necessary financial capital through various avenues such as from early-stage investors, reinvesting profits, loans from banks or bonds, and selling stock. When selecting these sources of capital, firms must carefully plan how to balance spending and earning to ensure the viability and growth of the business.

Answer 2

Ruby is engaged in financial planning, focusing on investment strategies to secure financial capital for the firm's future growth and competitiveness.

Step-by-step explanation:

Ruby, who heads Soleil Solutions’ finance department, is exploring how the business can stay competitive by analyzing emerging technologies and considering investment timelines for upgrades. This strategic behavior is a part of financial planning, particularly investment strategies. She examines potential avenues for securing financial capital to sustain business growth and competitiveness over time. Firms need financial capital to invest in long-term assets, and they can acquire these funds through various sources, including early-stage investors, reinvesting profits, borrowing from banks or bonds, or selling stock. Selection of a financial capital source dictates the repayment method and has long-term implications on the company's financial health.