Limitations of Financial Planning Homework Help

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Financial planning is a process used to plan the financial flow of a company. It is concerned with various financial activities such as policies, objectives, procedures and budgets. It plays a key role in the success of any business enterprise. There are three types of financial plan- short-term, medium-term and long-term financial plan. Short-term financial plan is prepared for a maximum period of one year. Medium-term financial plan is prepared for a maximum period of five years. Long-term financial plan is prepared for a period of five years or more than that.

Some objectives of financial planning outlined in Limitations of Financial Planning Homework Help are


 It determines the best financial resources required for the company.
 It provides flexible plans to adjust the financial structure of a company,
 It prevents the loss of control of business by matching costs with risks.
 It helps in execution of the budget.

Along with numerous advantages, financial planning also has many limitations. Limitations of Financial Planning Homework Help provide an insight of various limitations of financial planning.

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Limitations of Financial Planning


The various limitations of financial planning explained in Limitations of Financial Planning Homework Help are given below

Difficulty to forecast- Since, the future is always uncertain, financial planning might not be worthy for the management. Sometimes, forecasting gives wrong predictions and hence cannot be relied on.

Difficult to change- Financial planning, once prepared, is very difficult to change. Changing of the whole plan would result in the loss of capital. Company’s assets would have been used to buy raw materials and labours. Change in government plan is also responsible for its downfall. Hence, it has drastic impact on the business. Our team of experts will help you know about Limitations of Financial Planning Homework Help.

Rapid Changes- The changes in industrial process results in the change of financial plan. Once invested on raw materials and man power, it becomes very difficult to reverse it. Not all the financial plans can adopt new techniques to cope with the changing situations.

Problem of Co-Ordination- In order to have an effective financial planning, there must be proper co-ordination among all the functions. Co-ordination among members is essential to ensure consistency in the plan. The most perfect financial plan may also fail due to lack of co-ordination among various officials of the firm. Financial Planning is a vast topic and requires proper understanding. Limitations of Financial Planning Homework Help explain all the topics related to financial planning for crystal-clear concept.

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