Which of the following is not a feature of a financial plan? (2024)

FAQs

Which of the following is not a feature of a financial plan? ›

The financial plan portrays all of the activities, assets, machinery, and materials that are required to accomplish these targets, within a stipulated time frame. Cost is not a feature of financial planning as the plan deals with determining the cash flow of the organisation.

The main elements of a financial plan include a retirement strategy, a risk management plan, a long-term investment plan, a tax reduction strategy, and an estate plan.

Explanation: The correct answer is Visualize winning the lottery. While all the other options are part of the financial planning process, visualizing winning the lottery is not.

Answer. Confirming the business mission, vision, and objective is not a financial planning activity, as it is related to strategic planning. Financial planning involves budgeting, investing, resource management, and assessing the business environment.

A financial plan is a comprehensive picture of your current finances, your financial goals and any strategies you've set to achieve those goals. Good financial planning should include details about your cash flow, savings, debt, investments, insurance and any other elements of your financial life.

Detailed Solution. Fixed assets are not a source of finance for a company. Key Points Fixed assets: Fixed assets are long-term tangible assets that businesses employ to make money.

The trade market is NOT included in the financial sector. Financial Market: Financial markets act as an intermediary between lenders and borrowers. Financial markets help in smoothening out the capitalist economy.

Answer and Explanation:

Reducing unemployment and helping speculators to bet on price movements are not functions of a financial system.

What is the financial planning process? ›

There are six steps in the financial planning process: understanding your financial circ*mstances, identifying goals, analyzing your current course of action, developing a financial plan, and monitoring progress and updating. This is a great question to ask if you're considering working with a financial planner.

Managing income and expenses to achieve financial goals and ensure financial security. To manage existing investment to earn maximum return. It includes managing monthly expenses, tax saving, tax planning, retirement planning, etc. It includes making new investments, asset allocation, portfolio balancing, etc.

Finance experts advise that individual finance planning should be guided by three principles: prioritizing, appraisal and restraint. Understanding these concepts is the key to putting your personal finances on track.

a plan that specifies your financial goals and describes the spending, financing, and investing plans that are intended to achieve those goals.

We at FundWell believe that business owners should take a holistic and proactive approach to their financial wellness. This includes strategic and tactical steps to continually evaluate and improve four key financial indicators: cash flow, credit, customers, and collateral. We call these indicators the 4 C's.

Financial Planning for Individuals & Families

For individuals and families, we focus on asset/liability matching, tax-efficiency, and cost-effective planning throughout the four key phases of financial management: accumulation, distribution, preservation, and legacy. Plan to budget, determine investments, set goals.

The five key functions of a financial system are: (i) producing information ex ante about possible investments and allocate capital; (ii) monitoring investments and exerting corporate governance after providing finance; (iii) facilitating the trading, diversification, and management of risk; (iv) mobilizing and pooling ...

4) Evaluate Alternatives

This is your chance to discuss the alternatives face-to-face and take necessary actions bearing in mind your current situation, financial standings and personal interests. If you have any concerns regarding your financial planner's recommendations, those can be altered and revised.