Long term financial planning helps a financial manager in budgeting but has little to do with understanding how the business operates.

Question

Quizplus · Accepted Answer

Long term financial planning involves analyzing future goals, directions, and financial needs to make informed decisions about investments, financing, and budgeting. In order to develop an effective financial plan, a financial manager must understand how the business operates, its strengths, challenges, and competitive landscape. Therefore, long term financial planning is closely tied to business operations and strategy.

Long Term Financial Planning Helps a Financial Manager in Budgeting