Answer to Question #318888 in Economics for Jenson

Question

How much effect does financial planning have on the financing decisions of investors and company owners?

Answer 1

Financial planning helps investors and company owners to control their income, expenses, and investments such that you can manage your money and achieve your goals. Due to detailed plans, investors and business owners may understand limits for spending, the cost of money (in some cases it is more effective to deposit free money in bank and don't invest them in production).