A financial plan must take into consideration government policies.
Due to those policies in relation to issue payment of dividend and interest
rates, foreign business relations, issue of share and debentures and the
legislative restrictions on the use of certain sources of financing and
funding, an unsound financial plan may very well land the company in
litigation either between owners and associates within the company, other
Violations of compliance or ethics may even result in the business
being a defendant to suit brought on by a government agency. All of these
type litigations and suits are costly and should be avoided. The first
step to successfully avoiding these issues of violation which result in
litigation is the implementation of a sound financial plan which is the
framework for the business policies and processes in the financial aspects
A financial plan will set the business on the right course for legal
compliance, set business processes and guidelines, and provide a safeguard
in the utilization of the companies assets to best effect. The complexity
of the business environment today places significant interest on financial
...