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Question
Ashwin was working as Director Finance in Ambur Metal Works. Managing Director of the Company Kailash asked Ashwin to draft a proforma investment decision plan enlisting the funds which should be invested in different assets so that the company can get the highest possible returns. From the following identify the reason(s) that would help Ambur Metal Works.
- It will help the company to understand the total amount of funds required.
- It will also help the company to assess the situation as to whether they have excess or inadequate funds.
- It helps the company to understand the various sources of funds.
- It helps the company to reflect the position of the business at the end of every year.
Options
i only
i and ii only
i and iii only
i, ii, and iii only
MCQ
Solution
i and ii only
shaalaa.com
Business Plan - Components of Financial Plan
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| Karthik is in the business of manufacturing laptop components since 2010. They have been supplying their parts to all major manufacturers. His son Harsh took over the factory in 2022. He had done his Masters in Business Administration and wanted to expand the operations of the company. He planned to start manufacturing laptops to be sold in the Indian market. He discussed the idea with his financial team. They estimated the cost of the project to be around Rs. 65 crores. They decided to take the required funds from potential investors. The financial team of the company decided to make a plan which will explain to the potential investor the ways and means of how the entrepreneur plans to meet all financial obligations. |
Explain any five components of this plan.
