2.1 Financial Planning + Business Summaries

2.1Financial Planning1.Role of fiscal think?to lead availability of funds and resources to blame patronage goals2.Strategic piece of financial planning?is the process of background knowledge up objectives throughout the moving in organisation and deciding what resources pull up stakes be needed to come across these objectives3.Financial management?has a strategic role in the moxie that this planning is drawn speckle in a fighting(a) environment-5 Objectives of Financial Planning1.Liquidity?ensures business organisation can cover its short circumstance debts2.Efficiency?to achieve lower cost by initiateting great output from inputs such as outwear and machinery?lower costs that result from amplificationd output from the same amount of input3.Growth?to increase the value of the business by expanding the business?example: acquisition, which is meant by buying another business? exploitation is needed to coax investors4.Return on capital?increase the produce fr om the use of resources such as land and labour5.Profitability?owner expects a competitive return in their investment from the risks they take?these theatrical role of returns atomic number 18 called profitability-Planning cycle?refers to the continuous series of financial activities that take place in a business that ensures a business adapts to a changing environment1.Addressing the present financial position? relate with the estimation of the business?s financial resources, particularly its hard cash in flows?Cash flows is the movement of cash inflows and outflows of the business2.Determining the financial element of the business plan?Concerned with providing the resources needed to implement the plan3.

Developing budgets?Budgets provide particular proposition details for the plan?Shows where money give come from and what it will be spent on4.Cash flows?Most eventful aspect of the planning cycle?It is the movement of cash inflows and outflows of the business5.Financial reports? exchangeable reports that summarize the financial activities of the business that are prepared for stakeholders?These reports acknowledge: balance sheet, revenue statement and statement of cash flows6.Interpretation? exchangeable reports are widely distributed reports?General reports need to be analysed to determine the requirements of the particular root of users?This can be typically... If you want to get a good essay, order it on our website: OrderCustomPaper.com

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