Identify the financial concept which refers to the preparation of financial blueprint of an organisation's future operation.
Identify the financial concept which refers to the preparation of financial blueprint of an organisation's future operation.
Solution
✅ Correct Option: 2
Financial planning is the preparation of a financial blueprint for an organisation's future operations. It involves estimating the funds requirement and determining sources of funds. Financial management is broader, leverage refers to use of fixed cost sources, and trading on equity involves using debt to enhance shareholder returns.
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