Factors Affecting the Financial Plan Homework Help

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A financial plan must have certain qualities such as it should be conservative, should be practically implemented and should facilitate for control of outflow of funds and cost reduction. Financial plan must have principles for its effectivity – it should be uniform, profitable and practical, suitable and should consider the risk factor.Financial plan should look after providing future funds in case the company would need it in times of crisis. For further knowledge about financial plan and factors affecting it refer Factors Affecting the Financial Plan Homework Help.
 

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Factors affecting financial plan

 

The various factors affecting the financial plan explained in Factors Affecting the Financial Plan Homework Help are
 
• Interest rates- This factor determines the rates at which a business borrows or lends from or to banking sectors. The rates tend to increase in the market when business people want to borrow money in order to grow their business. And moreover during inflation the RBI might increase the interest rates to bring down the inflation and this further would cause havoc in the market and hence it would be very difficult for the management of the business to create a financial planning in the specified budget. For deeper understanding of financial look into Factors Affecting the Financial Plan Homework Help.
 
• Global issues- The economy of a country is affected by global issues for example when there is rise in the price of oil internationally an overall impact is seen on every country’s economy and hence those countries face inflation resulting in rise of interest rates since the money flows in the form of investments hence the fate of business lies in the hands of the global rising and downfall of economy. Financial planning therefore becomes critical at times to prepare in such situations.Factors Affecting the Financial Plan Homework Help would do the needful in culminating better knowledge about financial planning.
 
• Political issues- Economic growth occurs when there is political stability in a country. Both social issues and growth are equally important but there are some political parties who give more importance to the former and hence this has some positive effect on the economy and finance of the country which indirectly has its effect on the business finance. Therefore the political party in power will have an effect on the performance of the stocks hence affects financial plan of a business.
 
• Economic growth of country- when a country is having its economic cycle that is there would be years where the economy will grow in a slower rate and there would be years when it would be growing in a faster, which would ultimately affect the business to go well or not, therefore deciding whether making a financial plan would be easier or critical.
 

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