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Q.

Financial planning usually begins with the preparation of _____________

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a

Business cycle

b

Profit forecast

c

Sales forecast

d

None of the above 

answer is A.

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Detailed Solution

The financial planning begins with determination of total capital requirement. For this the finance Managers do the sales forecast and if the future prospects appear to be bright and expect increase in sale, then firm reeds to increase its production capacity which means more requirement of long term funds.

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