Which type of financial policy is long-term planning especially useful for?

Long-term planning is particularly useful for overall financial policies because it encompasses a broad range of strategic objectives that guide the financial direction of an organization. This type of planning includes setting goals for revenue growth, capital structure, investment strategies, and risk management over an extended period.

By focusing on overall financial policies, organizations can align their short-term operations with long-term objectives, ensuring that daily financial decisions contribute to sustainable growth and stability. This holistic view allows for better resource allocation, comprehensive forecasting, and strategic decision-making that reflects the organization's long-term vision.

In contrast, cash management and short-term investments are more focused on immediate financial concerns and operational efficiency, and profit maximization typically targets short- to medium-term results rather than aligning with long-term financial strategies. Therefore, overall financial policies benefit significantly from long-term planning since they shape the future trajectory of the organization.