BACHELOR OF BUSINESS ADMINISTRATION

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BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Long term financial plans usually exceed five years such as children’s education, retirement and buying a house. To develop a long-term financial plan, one of the key aspects to be considered is
A
personal health
B
savings
C
instalments
D
passive income
Explanation: 

Detailed explanation-1: -A financial plan for a period of five to seven-year comes under medium-term plans.

Detailed explanation-2: -Long-term financial planning involves projecting revenues, expenses, and key factors that have a financial impact on the organization. Understanding long-term trends and potential risk factors that may impact overall financial sustainability allows the finance officer to proactively address these issues.

Detailed explanation-3: -Long-term financial goals take five or more years to accomplish and generally apply to major life events. Some of the most important long term financial goals people have include saving for retirement and paying off their mortgage.

Detailed explanation-4: -A 5-year financial plan is a plan for the future financial needs of a business or organization, which projects how much income and expenditure it will have. It is a systematic plan that supports the short-term and long-term strategic goals of an organization or company.

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