financial planning? What financial problems might an organization encounter when implementing a strategic plan? o Strategic planning is a companies way of allocating resourcess to pursue a particular course of action. Some differences in strategic and financial planning are the financial resources and the avenues of availability to the company. Some financial problems an organization might face when implementing a stragecis plan is lack of finances. A company might have a stragtegic course of action but might not be able to finance the action.
What information is needed to prepare a cash budget? What is the relationship between an operating and a cash budget? Why is it important for an organization to prepare a cash budget o It is important for an organizaton to prepare a cash budget because it serves as a benchmark for analyzing the firms operations over time and gives the organization a goal. The organization needs a financial plan, historical data, sales and expense data and logical place to start in regards to revenue and cost.
What is the break-even point? What decisions does the break-even point help an organization make? What actions might an underperforming organization take to reach the break-even point? o The break-even point is the zero-balance of what the organiztion puts out in reference to what it spends. The break-even point helps an organization make decisions such as how much it can spend and what it can spend its money on. Decisions that can impact an underperforming organizations break-even point include reducing expenses and increasing performance to achieve maximum profit
How do you explain the use of time value of money (TVM) in business? What considerations are made when calculating TVM? How may you use TVM to create your own, or someone elses, retirement plan? o Time is money is explained in relation of early savings and compound interest. The earlier you start saving the more mone you can save in the future because of compound interest. Considerations to make when calculating TVM are the amount of money you put in, the interest of money gained and if that % is going to be compounded. You can use TVM to create your own retirement by calculating and end goal to where youd like to be for retirement and calculate and percentatge of how you would like to get there. What type of investments you make are crucial to how much you get in the end result are imparative also.