Financial planning is important for a business. Why? - Vidyadip

Question

Financial planning is important for a business. Why?

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Answer

Sound financial planning is necessary for the success of a business enterprise as:

It entails policies and procedures for proper coordination between the various functional areas of business.
It involves proper allocation of resources amongst various departments.
In the absence of an accurate plan, the enterprise may have to face frequent difficulties that hamper its growth.

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