ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A financial plan is a report that summarizes your current financial condition, acknowledegs your financial needs, and sets a direction for your future financial activities.

Detailed explanation-2: -A financial plan consists of five budgets that detail the minimum requirements for starting your business, the investments you will need to make and how you plan to finance them. This allows you to determine whether your business idea is viable.

Detailed explanation-3: -Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and objectives have been set.

Detailed explanation-4: -A budget is a financial plan for a defined period, often one year.

Detailed explanation-5: -The four main types of financial planning are cash flow planning, tax planning, investment planning, and retirement planning. Each of these types of financial planning has different goals, concerns, and objectives.