Question

What are the two objective of Financial Planning.

Options

• Ensure Availability of Funds

• Proper Utilisation of Funds

• Both (1) and (2)

• None of the above

Answer 1

Both (1) and (2)

Explanation - 

The following are the two highlighted objectives of financial planning.

1. Ensure that funds are available :  Ensuring that the appropriate amount of money is available. One of the is being available at the proper time. the primary goals of financial planning It includes calculating the appropriate amount of finances necessary for various business ventures long-term operations as well as day-to-day activities day-to-day operations Additionally, it includes predicting when the funds would be available be necessary As a result, financial planning guarantees that sufficient money are accessible at the ideal moment Planning your finances is also important determine the most likely funding sources.

2. Full Utilization of Finances : Ulds Financial Planning attempts to maximise the use of funds. It ensures that both insufficient and excess finances are avoided. Insufficient funds impede smooth operations, and the company is unable to meet its obligations. Excess money, on the other hand, raise the cost of doing business and encourage wasteful spending. As a result, financial planning guarantees that money be used effectively and optimally.