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Question
Which of the following statements is incorrect?
Options
Financial planning is the process of estimating the fund requirement of a business and specifying the sources of funds.
The objective of financial planning is to ensure that enough funds are available at right time.
Financial planning is a substitute of Financial Management.
None of the above
Solution
Financial planning is a substitute of Financial Management.
Explanation -
Financial planning is not the same as, or a replacement for, financial management. Financial management strives to select the finest investment and financial planning options based on their costs and advantages. Its goal is to raise the wealth of its stockholders. Financial planning, on the other hand, focuses on smooth operations by concentrating on fund requirements and their availability in light of financial decisions.