Question

Explain financial planning and importance of financinal planning

Answer 1

Financial planning is a process of estimating the funds requirements of a business and specifying the sources of funds.

IMPORTANCE!!

1.Helps in avoiding business shocks and surprises.

2.Helps in forecasting what may happen in future under different business situations.

3.It tries to link the present with future.

4.It provides a link between financing and investment decisions.