Question:
Which of the following is not highlighting the importance of financial planning:
Which of the following is not highlighting the importance of financial planning:
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Financial planning improves efficiency — not waste. It streamlines business decisions.
Updated On: Jan 13, 2026
- It helps in forecasting what may happen under different business situations.
- It helps in avoiding business shocks and surprises and helps the company in preparing for the future.
- It provides a link between investment and financing decisions on a continuous basis.
- Detailed plans of action prepared under financial planning increases waste, duplication of efforts and gaps in planning.
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The Correct Option is D
Solution and Explanation
Financial planning aims at anticipating financial needs, setting future goals, allocating resources efficiently, and minimizing uncertainty. The ultimate purpose is efficiency, integration, and clarity in financial decisions. Let’s evaluate the statements:
Final Answer: (D) Detailed plans of action...
- (A) is correct — forecasting future business conditions is a key role of financial planning.
- (B) is correct — proper planning prepares the business to handle shocks and volatility.
- (C) is correct — it connects investment choices with appropriate financing sources.
- (D) is incorrect — this option contradicts the core objective. Financial planning reduces duplication and inefficiencies.
Final Answer: (D) Detailed plans of action...
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