Document Summary
A financial planning should be formulated in the light of present as well as future developments. A financial plan is a statement estimating the amount of capital and determining its composition. The quantum of funds needed will depend upon the assets requirements of the business. There are a number of ways for raising funds. The selection of various should be done carefully. It should be adjustable as per the changing conditions: simplicity: the financial structure should not be complicated by issuing a variety of securities. The number of securities should be less so that it is easily understood: long term view: a financial plan should take a long-term view. The needs for funds in the near future and over a longer period should be considered while selecting the pattern of financing: liquidity: the liquidity of funds should always be kept in mind while preparing a financial plan.
