Answer:
Financial planning is a process which prepares a blue print relating to finance needs. It means estimating the finance requirements of a business and determining the sources of funds. Financial planning includes both short-term and long-term planning. Following are the two objectives of financial planning: (i) To Ensure Availability of Funds, Whenever Required If adequate funds are not available, the business unit will not be able to honour its commitments and plans. (ii) To See that the Firm does not Raise Funds Unnecessarily If excess of funds are available with the business unit, it will unnecessarily add to the cost and may encourage excess expenditure.
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