The prime responsibility of a finance manager is to determine in advan

1.	The prime responsibility of a finance manager is to determine in advance the amount of capital, its sources and patterns.(a) Give a suitable name to this process. (b) Mention the importance of this process.
Answer» (a) Financial Planning (b) Importance of Financial Planning (1) It ensures adequate funds from various sources. (2) It reduces the uncertainty about the availability of funds. (3) It integrates the financial policies and procedures. (4) It helps the management to eliminate waste of funds and reduce cost. (5) It helps to achieve a balance between the inflow and outflow of funds and ensure liquidity. (6) It serves as the basis of financial control (7) It helps to reduce cost of financing to the minimum. (8) It helps to ensure stability and profitability of business. (9) It makes the rm better prepared to face the future

The prime responsibility of a finance manager is to determine in advance the amount of capital, its sources and patterns.(a) Give a suitable name to this process. (b) Mention the importance of this process.

Answer»

(a) Financial Planning

(b) Importance of Financial Planning

(1) It ensures adequate funds from various sources.

(2) It reduces the uncertainty about the availability of funds.

(3) It integrates the financial policies and procedures.

(4) It helps the management to eliminate waste of funds and reduce cost.

(5) It helps to achieve a balance between the inflow and outflow of funds and ensure liquidity.

(6) It serves as the basis of financial control

(7) It helps to reduce cost of financing to the minimum.

(8) It helps to ensure stability and profitability of business.

(9) It makes the rm better prepared to face the future

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