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Question
What is a financial plan? What are its objectives?
Solution
Financial plan is a process of determining firm’s financial needs or goals for the future and the means to achieve them. Objectives of financial plan:
(i)To assess the amount of finance needed by enterprise.
(ii)To develop suitable capital structure for the enterprise.
(iii)To make the policies related with the finance for the enterprise.
(iv)To safeguard the enterprise for financial risk.
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