2.1 Financial Planning + Business Summaries

2.1Financial Planning1.Role of fiscal think?to bequeath availability of funds and resources to bash patronage goals2.Strategic piece of financial planning?is the process of ground up objectives throughout the moving in organisation and decision making what resources pull up stakes be needed to procure these objectives3.Financial management?has a strategic role in the sense datum that this planning is drawn dedicate in a slashing environment-5 Objectives of Financial Planning1.Liquidity?ensures military control can cover its short limit debts2.Efficiency?to achieve lower cost by expressting great output from inputs such as outwear and machinery?lower costs that result from augmentd output from the same amount of input3.Growth?to increase the value of the business by expanding the business?example: acquisition, which is meant by buying another business? exploitation is needed to cast investors4.Return on capital?increase the hand over from the use of resour ces such as land and labour5.Profitability?owner expects a competitive return in their investment from the risks they take?these theatrical role of returns argon called profitability-Planning cycle?refers to the continuous series of financial activities that take place in a business that ensures a business adapts to a changing environment1.Addressing the present financial position? relate with the legal opinion of the business?s financial resources, particularly its hard currency flows?Cash flows is the movement of cash inflows and outflows of the business2.Determining the financial element of the business plan?Concerned with providing the resources needed to implement the plan3.

Developing budgets?Budgets provide particular proposition details for the plan?Shows where money pass on come from and what it will be spent on4.Cash flows?Most fundamental aspect of the planning cycle?It is the movement of cash inflows and outflows of the business5.Financial reports? regulate reports that summarize the financial activities of the business that are prepared for stakeholders?These reports intromit: balance sheet, revenue statement and statement of cash flows6.Interpretation? standardize reports are widely distributed reports?General reports need to be analysed to obtain the requirements of the particular root of users?This can be typically... If you want to get a good essay, order it on our website: OrderCustomPaper.com

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