andldquo;It aims at enabling the company to tackle the uncertainty in respect of the availability and timing of the funds and helps in smooth functioning of an organisation.andrdquo; This statement is related to one of the concepts of financial management. Identify it:a)Capital Structureb)Dividend Decisionc)Investment Decisiond)Financial PlanningCorrect answer is option 'D'. Can you explain this answer?

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a)
Capital Structure
b)
Dividend Decision
c)
Investment Decision
d)
Financial Planning

Correct answer is option 'D'. Can you explain this answer?

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CUET Business Studies Previous Year Solved Paper 2 (20 July 2022 Slot-1)

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“It aims at enabling the company to tackle the uncertainty in re...

Financial planning is an important part of overall planning of any business enterprise. It aims at enabling the company to tackle the uncertainty in respect of the availability and timing of the funds and helps in smooth functioning of an organisation.

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“It aims at enabling the company to tackle the uncertainty in re...

Financial Planning:
Financial planning is the process of determining how a business will afford to achieve its strategic goals and objectives. It involves analyzing the company's current financial situation, estimating future financial needs, and developing a plan to meet those needs.

Importance of Financial Planning:
- Availability and Timing of Funds: Financial planning helps in forecasting the availability and timing of funds, enabling the company to manage uncertainty and ensure smooth functioning.
- Budgeting: It helps in creating a budget that aligns with the company's goals and ensures efficient allocation of resources.
- Risk Management: By identifying potential financial risks and developing strategies to mitigate them, financial planning helps in safeguarding the company's financial stability.
- Decision Making: It provides a framework for making informed financial decisions and evaluating the impact of those decisions on the company's overall financial health.
- Growth and Expansion: Financial planning plays a crucial role in supporting the company's growth and expansion by identifying opportunities for investment and ensuring the availability of funds.
In conclusion, financial planning is essential for any organization as it helps in managing financial resources effectively, ensuring stability, and preparing for future uncertainties. It is a vital concept in financial management that contributes to the overall success of a business.

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“It aims at enabling the company to tackle the uncertainty in respect of the availability and timing of the funds and helps in smooth functioning of an organisation.” This statement is related to one of the concepts of financial management. Identify it:a)Capital Structureb)Dividend Decisionc)Investment Decisiond)Financial PlanningCorrect answer is option 'D'. Can you explain this answer?

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