Answer to Question #319401 in Finance for Jenson

Question

To what extend does financial planning influences investors and business owner’s financing decision.?

Answer 1

Financial planning influences investors' financing decisions to a significant extent as a financial plan helps one understand their goals and how comfortable they are with risks. Thus, it acts as a roadmap for making investment decisions. For business owners, financial planning enables them understand the financing needs of their organizations and is also used to attract potential investors, most of whom are often interested in the company's financial plan and how it intends to spend and grow their funds.