Student Solution

-->

"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

1 University

1 Course

2 Subjects

Discussion Question 14

Discussion Question 14

Q 1. Why is it important to prepare a financial budget? 2. Explain what is meant by the term "time value of money". For example, why might it be better to receive $8 today, over receiving a promise of $9 seven years from now? 3. How should one consider the time value of money when planning for retirement? Please share examples within your response. Comment on least 2 posts. Please number, bullet, or provide spacing for each question response.

View Related Questions

Solution Preview

A financial budget provides the roadmap of revenues and expenses according to the organization's financial targets. It is a financial plan for a definite period in the future that allows the management to operate with a volume that could meet the plan targets. It helps that managed to grow the business by formulating the operations and controlling the costs and expenses of the company. The track of expenses, revenue variation analysis, and capital estimation augment the profitability of a business, which is the ultimate objective of any business in the world.