Question

Enumerate any five points of importance of financial planning.

Answer 1

Answer:

1.Intellectual process

2.Goal oriented

3.Future oriented

4.Continuous process

5.Dynamic function

Answer 2

The importance of financial planning:

1. Financial planning is a fundamental task of every company as it helps companies to attain the stability required and ascertain a balance between inflow and outflow.  

2. Secondly, financial planning also helps in ensuring that company also has access to income.  

3. Thirdly, financial planning helps companies in obtaining higher and steady cash flow.  

4. Fourthly, financial planning helps companies to engage in risk management and this enables them to ensure profitable sustenance in the future.  

5. Lastly, financial planning helps companies to ascertain profitability in the future.  

Financial planning aids companies in ensuring a sufficient equilibrium between the inflow and outflow of funds to help companies attain stability.