Question

In financial planning, analyzing costs, benefits, and risks

Answer 1

Financial planning deals with the sequence of activities that the company has to carry out in order to find out whether it can achieve its goal or not. The financial capability of a firm will be a determining factor for pursuing the goals of the firm. The financial planning includes studying and analyzing the costs incurred by the firm, the benefits that it will obtain and the risks that it has to undergo. The comparison can be between two options or between two projects. The company will analyse the costs, benefits and risks involved. The project that the firm will find to be more balanced in terms of risk, cost and benefits will be selected.