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Financial Planning
A financial manager along with present investment policies will be concerned along with how efficiently the company's funds are invested since it is from that investment such the company will survive. Investments are significant because of:
In calculation, this investment decision creating process also recognized as capital budgeting includes the decision to invest the company's current funds in viable ventures whose such returns will be realized for long term time in future. Capital budgeting as financial planning is characterized via the following:
1. Decisions of this nature are long term that is extending beyond one year whether case they are also expected to create returns of long term in nature.
2. Investment is generally heavy or like heavy capital injection and like has to be appropriately planned.
3. These decisions are irreversible and any type of mistake may reason the company heavy losses.
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Financial Management On the other hand a financial manager has to meet the company's strategic or long term needs as long term investment are helpful to the company since:
discuss the flow of fund in an open economy
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