Effect of Financial Planning in the Automobile Industry

Abstract

Financial planning, an integral part of financial management, deals with managing funds for a company to maximize profits and shareholder wealth. Financial planning serves three purposes: It helps determine where the firm has been, its current position, and its future. It also helps to determine the probability of a variation from the best outcome. Finance is the study of the challenges connected with the procurement and management of funds by a business. Financial planning includes analyzing the financial flow of a company, forecasting the results of various investments, financing, dividend decisions, weighting the effect of various options. Financial planning is the foundation of financial management. It assists management in avoiding waste by providing policies that make it possible to better coordinate the functions of the business.