Which of the following are three key questions financial managers typically ask when considering long-term financing options?

• A. What is the depreciation method, how are dividends distributed, and what is the cash flow from operations?
• B. Who are the competitors, what are the advertising costs, and how many employees are required?
• C. How much money is needed, when will the funds be needed, and what sources are available?
• D. What are the current tax rates, how much inventory is on hand, and what is the company's market share?

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the context of the question. Financial managers are responsible for making decisions about long-term financing options, which involve planning for the company's future financial needs and ensuring the availability of funds to meet those needs.
2. Step 2: Identify the key considerations for long-term financing. These typically include determining the amount of money required, the timing of when the funds will be needed, and the sources from which the funds can be obtained.
3. Step 3: Evaluate the options provided in the question. The correct answer should align with the responsibilities of financial managers in planning and securing long-term financing.
4. Step 4: Eliminate irrelevant options. For example, options discussing depreciation methods, advertising costs, or market share are not directly related to long-term financing decisions.
5. Step 5: Confirm the correct answer. The correct answer is: 'How much money is needed, when will the funds be needed, and what sources are available?' These are the three key questions financial managers typically ask when considering long-term financing options.