Question

5) Provide a detailed description of Financial Planning.

Answer 1

It is the process of estimating the requirement of capital and vaious available sources. Main obejectives of finnaicl planning is estimating the capital requirement, determining capital strcuture, farming finanical policies. Fininancial planning is important because to ensure adequacy of funds, it helps in reducing the sudden situation of non availability of funds, it enables balance between infow and out flow of funds, it helps making exapnsion and growth plan.