Asked by jasmine badayos on Jun 12, 2024
Verified
Financial planning focuses on:
A) The individual components of the financial policy.
B) The major elements of the financial and investment policies.
C) Anticipated changes only in the short-run.
D) The income statement but not the balance sheet.
E) Capital structure and dividend policy only.
Financial Planning
The process of estimating the capital required and determining its competition; it is the process of framing financial policies in relation to procurement, investment, and administration of funds of an enterprise.
Financial Policy
A set of guidelines or a framework that directs and governs how a company manages its financial resources, including investment, financing, and dividend policies.
Investment Policies
Guidelines or strategies that govern how an organization or individual allocates resources in investment decisions.
- Comprehend the fundamental aspects of financial planning and their significance in the development and continuity of a business.
- Understand the critical role of defining a planning timeframe and creating financial strategies in the strategic financial planning procedure.
Verified Answer
EM
Emily-Joyce MarquezJun 19, 2024
Final Answer :
B
Explanation :
Financial planning encompasses the major elements of both financial and investment policies, integrating various aspects of financial management to achieve the organization's goals.
Learning Objectives
- Comprehend the fundamental aspects of financial planning and their significance in the development and continuity of a business.
- Understand the critical role of defining a planning timeframe and creating financial strategies in the strategic financial planning procedure.