Which document outlines long-range strategy and financial objectives usually accompanied by budgets and cash flow?

• A. Strategic plan
• B. Business plan
• C. Operating plan
• D. Buffer management

Answer: (B)

Long-range planning and financial objectives are captured in a strategic plan. This document maps where the organization intends to go over an extended horizon and how it will allocate resources to reach those goals. It translates strategy into numbers by including budgets and cash-flow projections, showing not only what the goals are but also whether they’re financially feasible and how cash will flow to support them over time.

A business plan, while it may include some financial projections, centers on describing the business opportunity, market approach, and viability—often focused on starting or growing the enterprise rather than outlining long-term strategic direction. An operating plan is more focused on the near term, detailing actions, milestones, and resources needed for the coming year. Buffer management deals with maintaining safe inventory and capacity buffers in production, not with outlining strategic direction or financial objectives.