Financial planning is the process of determining the objectives, policies, procedures programs and budgets to carry out the effectively the financial activities of an enterprise. It is a process of deciding in advance the financial activities necessary for an enterprise to achieve its objective. In other words, it is an application of planning function of management to the financial aspect of an enterprise. It involves of activities which aim at providing funds to activities to an enterprise regularly and ensure their efficient and proper use. It mainly involves procurements of funds and their proper utilization. It determines how much amount is required to purchase fixed assets or current assets. It also involves decision regarding the kinds of securities i.e. shares, debentures, and bonds.
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