Question

The financial analysis component of a business plan is to describe

Answer 1

Answer:

The correct answer is D. The financial analysis component of a business plan is to describe where the funds to start and operate your business will come from, when you expect to see profit, and how much profit you expect to see.

Step-by-step explanation:

Financial analysis is a type of economic analysis associated with the study of the financial results and financial condition of an organization. With the help of the analysis of the financial condition, it is possible to determine the strengths and weaknesses of the enterprise, the optimal management decision, forecasting individual indicators of the enterprise and financial activities in general, which, in turn, allows you to control the efficiency of the movement of financial flows, check the compliance with the norms and standards for the expenditure of financial and material resources and the feasibility of the costs incurred.

The purpose of the analysis of financial statements is an assessment of past activities according to the data of the report and the situation at the time of analysis, as well as an assessment of the future potential of the enterprise, that is, the forecast of the further development of the enterprise.