Financial planning,when properly executed
A)helps ensure that adequate financing is in place to support the desired level of growth.
B)ensures that the primary goals of senior management are fully achieved.
C)reduces the necessity of daily management oversight of the business operations.
D)ignores the normal restraints encountered by a firm.
E)eliminates the need to plan more than 1 year in advance.

Question

Quizplus · Accepted Answer

Financial planning involves forecasting future financial needs and taking appropriate measures to ensure adequate financing is in place to support growth. Therefore, option A is the best choice. Option B is not entirely accurate as financial planning does not focus solely on senior management goals but overall financial goals of the organization. Option C is not true as financial planning requires continuous monitoring and adjustments. Option D is not relevant as financial planning operates within normal business restraints. Option E limits the scope of financial planning as it should look further ahead than a year.

Financial Planning,when Properly Executed