Question

sikander works in a furniture manufacturing company. The company is now venturing into a new range of living room furniture. As the marketing manager of the company he has been asked to devise a marketing plan for the proposed new range of furniture within a budget of Rs.5 crore. Identity the step related to the planning function which is being discussed.
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Answer 1

Explanation:

1. As a financial manager of the company, I will opt for debt to raise the required amount of capital.

I support my decision by giving the following reasons:

Interest coverage ratio:

Tax rate:

2. The shareholders of the company are likely to gain from the issue of debt by the company because the return on investment is higher. It helps a company to take advantage of trading on equity to increase the earnings per share.

It's helpful for u I think so

Answer 2

Numberizing Plan by Budgets

• The final step in the Planning function of Management is to numberize the plan. This is also called Budgeting.
• Budgets become a means of coordinating various plans. They also become important standards against which planning progress can be measured.
• Planning is always done keeping the future in mind, however, the future is always uncertain. So in the function of management certain assumptions will have to be made.
• These assumptions are the premises. Such assumptions are made in the form of forecasts, existing plans, past policies, etc.

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