Purchase Solution

Financial planning is an important part of business planning

Not what you're looking for?

Ask Custom Question

(a) Explain why financial planning is an important part of business planning.
(b) Describe one way that financial ratio analysis of projected financial statements could be efficiently used by managers for financial planning.

Purchase this Solution
Solution Summary

The expert explains why financial planning is an important part of business planning. One way that financial ratio analysis is projected financial statements is described.

Solution Preview

a) Financial plan is an important concept of business plan as it helps in estimating the funds requirement and will assist in allocation of resources. It will help in working capital management and will aid in decision making of the entrepreneur as it involves preparation of Budgets, Income statement, Cost sheet and using evaluative tools. The Income statement is the scorecard that tells how much money the business earns over a given period of time.
As per trademartes, "A good and proper financial plan is useful to face ...

Purchase this Solution
Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Introduction to Finance

This quiz test introductory finance topics.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

View More Free Quizzes
Related BrainMass Solutions

  • Key data regarding Strategic Management

    It is a time consuming process, but will help in integrating important financial information for the business. Ø Forecast Based Panning: It is the phase of planning which is related to the future of the business.

  • Financial Planning: Importance

    Without financial planning, the long & short term visions of the business are meaningless. Financial planning is important for a business because based on the financial planning a business gets funds it requires for its plans.

  • Effect of company's capital structure on strategic financial planning

    It is because; the capital structure of an organization affects the capital budgeting process, which is a part of financial planning.

  • pros and cons of financial planning models

    Financial planning forms part of annual budgeting and plays an important role in long-term planning, business appraisals, corporate development etc. Cons of Financial Plan ?

  • Planning a Business Case

    - The most important part of the business plan is the financial plan because the investment determines how the business is going to be run. All aspects of the business involve certain cost.

  • The Characteristics of Financial Planning

    Financial planning forms part of annual budgeting and play an important role in long-term planning, business appraisals, corporate development etc.

  • Healthcare

    Diversifying into the health-care facilities requires a well developed planning effort on the part of the organization. Financial forecasting is very important while considering the financial planning for next year.

  • Corporate Governance and Financial Planning

    The growth of a business depends on a few factors which includes good leadership and an in demand product or service. Another important factor is careful and thorough financial planning.

  • Strategic Planning: Most Difficult and Challenging Part

    a) Strategic planning is a must for an organization's survival and growth. b) The most challenging part of strategic planning is finding ways on how to bridge the gap between where the company wants to go and where it is.

View More Related Solutions