What are the three parts of a financial plan? What will be an ideal r

QUESTION

What are the three parts of a financial plan?

What will be an ideal response?

ANSWER

Answer: The three parts of a financial plan are forecasting (predicting revenues, costs, and expenses), budgeting (a detailed plan for estimated revenues and expenses for the period), and financial controls (in which revenues and expenses are compared to the budgeted figures).
Explanation: A financial plan, a firm’s strategy for reaching its financial goals, has three parts: (1) forecasting, (2) budgeting, and (3) financial controls.