Question

Capital can be made available at minimum cost by financial planning. True or false​

Answer 1

Capital can be made available at minimum cost by financial planning -True

Answer 2

Financial planning is the conscious planning of the decisions such as borrowing and investing the capital of a firm.

Explanation:

• Financial planning refers to planning the finances of any firm.
• It includes major decisions such as where to borrow the capital from, where to invest the funds, how to spend the capital, etc.
• It is true that capital can be made available at minimum cost by financial planning.
• Under financial planning, a number of options can be found for borrowing capital. This reduces the chances of borrowing at a higher rate.
• In fact, it can bring in options that have rates cheaper than the market rates.