Two key objectives of financial planning and control are to avoid cash squeezes and to improve profitability.

Question

Quizplus · Accepted Answer

Financial planning and control aim to ensure that the organization has adequate cash flow to meet its obligations and that it generates profits. By avoiding cash squeezes, the organization can avoid defaulting on its debts or missing important opportunities because it lacks the funds to invest. Improving profitability helps the organization to sustain growth, increase shareholder value, and fund future initiatives. Therefore, both objectives are important for achieving financial stability and success.

Two Key Objectives of Financial Planning and Control Are to Avoid