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प्रश्न
Name and state the aspect of financial management that enables to foresee the fund requirements both in terms of 'the quantum' and 'the timings'.
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उत्तर
‘Financial Planning’ is the division of financial management which makes an organisation to predict the need of business finance and the time required to generate the same. It attempts to develop a predetermined structure for the provision of finance in the business for its ventures.
संबंधित प्रश्न
Name & state the aspect of financial management that provides a link between investment and financing decisions.
Explain the twin objectives of financial planning.
Aval Ltd. is engaged in the business of export of canvas goods and bags. In the past, the performance of the company had been upto the expectations. In line with the latest demand in the market, the company decided to venture into leather goods for which it required specialised machinery. For this, the Finance Manager Prabhu prepared a financial blueprint of the organisation’s future operations to estimate the amount of funds required and the timings with the objective to ensure that enough funds are available at right time. He also collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources of the business. For the remaining funds, he is trying to find out alternative sources from outside.
a. Identify the financial concept discussed in the above paragraph. Also, state the objectives to be achieved by the use of financial concept so identified. ( Financial Planning).
b. ‘There is no restriction on payment of dividend by a company’. Comment. ( Legal & Contractual Constraints)
______ takes into consideration the growth, performance, investments and requirement of funds for a given period
What is financial planning?
Which problems does financial planning seek to avoid?
What is the focus of financial planning?
When ensuring funds are available as required, which factors must financial planning consider?
Which capital needs are considered when preparing financial statements?
After estimating profits and retained earnings, what funding decisions are made?
What can happen when a business has too much debt?
What should be analyzed to decide how much debt is too much?
How does higher industry volatility affect the amount of debt a business should carry?
What may some lenders rely on more than earnings?
What should business owners use before borrowing to make sound borrowing decisions?
