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Unformatted text preview: a business may be determined by how the cash and other assets are to be maintained and used. A family-owned business requires a financial forecast to also determine how the cash and other assets are to be maintained and used. The principal owner of a family-owned business generally has a clear cut idea of the business capital position. A financial forecast is extremely important when personal assets and contributions are at stake. A long-standing corporation has an advantage over a brand new business and a family-owned business. A long-standing business can review previous financial forecasts and use those forecasts in preparing future plans. Goals are normally outlined with a financial forecast for a long-standing business. Exploring expansion, growth or to remain on a steady course are determined by the financial forecast. FINANCIAL FORECASTING 3 References Block-Hirt-Danielson. (2009). Foundations of Financial Management (13 th ed). The McGraw-Hill Companies....
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- Fall '08