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Which of the following best represents the financial planning cycle? (A) Retain profits, acquire equity finance, minimise risks, plan the marketing strategy (B) Address the present financial position, source funds, analyse reports, establish a cost centre (C) Address the present financial position, prepare budgets, analyse financial reports, plan financial controls (D) Conduct a situational analysis, lead structural change, maintain record systems, develop budgets and cash flows - HSC - SSCE Business Studies - Question 6 - 2007 - Paper 1
Question 6
Which of the following best represents the financial planning cycle? (A) Retain profits, acquire equity finance, minimise risks, plan the marketing strategy (B) Ad... show full transcript
Worked Solution & Example Answer:Which of the following best represents the financial planning cycle? (A) Retain profits, acquire equity finance, minimise risks, plan the marketing strategy (B) Address the present financial position, source funds, analyse reports, establish a cost centre (C) Address the present financial position, prepare budgets, analyse financial reports, plan financial controls (D) Conduct a situational analysis, lead structural change, maintain record systems, develop budgets and cash flows - HSC - SSCE Business Studies - Question 6 - 2007 - Paper 1
Step 1
Address the present financial position, prepare budgets, analyse financial reports, plan financial controls
Answer
To determine which option best represents the financial planning cycle, we must recognize the key components involved in financial planning. The cycle typically includes assessing the current financial position, preparing budgets to guide spending, analyzing financial reports for insights, and planning appropriate financial controls to ensure effective management of resources. Thus, option (C) encapsulates these essential elements, making it the most accurate representation of the financial planning cycle.