The Importance of Sound Financial Planning

             A financial plan must take into consideration government policies.
             Due to those policies in relation to issue payment of dividend and interest
             rates, foreign business relations, issue of share and debentures and the
             legislative restrictions on the use of certain sources of financing and
             funding, an unsound financial plan may very well land the company in
             litigation either between owners and associates within the company, other
             Violations of compliance or ethics may even result in the business
             being a defendant to suit brought on by a government agency. All of these
             type litigations and suits are costly and should be avoided. The first
             step to successfully avoiding these issues of violation which result in
             litigation is the implementation of a sound financial plan which is the
             framework for the business policies and processes in the financial aspects
             A financial plan will set the business on the right course for legal
             compliance, set business processes and guidelines, and provide a safeguard
             in the utilization of the companies assets to best effect. The complexity
             of the business environment today places significant interest on financial
             ...

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The Importance of Sound Financial Planning. (1969, December 31). In MegaEssays.com. Retrieved 05:18, April 20, 2024, from https://www.megaessays.com/viewpaper/201689.html