Question

The financial planning begins with ______.

Options

• Appointment of financial manager

• Deciding about requirements of fixed and working capital.

• Preparing budgets.

• Preparing sales forecast.

Answer 1

The financial planning begins with preparing sales forecast.

Explanation:

Financial planning begins with preparing a sales forecast because:

• Sales forecasts predict future revenues based on market conditions, past performance, and industry trends.
• Once sales forecasts are ready, businesses can estimate how much fixed and working capital they will need to meet sales targets, which leads to preparing budgets, appointing managers, and making other financial decisions.