Summary of Financial Planning and Management▲ Financial planning connects the goals a business wants to achieve in the future and the resources it will need to achieve these objectives. It is also about evaluating the financial resources of a company. Strategic financial management involves setting goals across the business and deciding what resources are needed to achieve those goals. The primary goal of financial management is to properly account for a business's revenues and expenses in order to maximize the value of that business to its owners. To achieve this objective, the manager must balance the following objectives: Liquidity Profitability Efficiency Growth Return on capital The financial planning cycle will be part of the business plan or will flow from the business plan. The financial planning cycle is a continuous cycle of activities that take place in the financial field as the business plan is implemented. These activities include: Addressing the current financial situation Determining financial elements of the business plan Developing budgets Estimating cash flows Preparing financial reports Interpreting financial reports Maintaining systems of record Planning financial controls Minimizing risks and losses Financial.▲ Financial markets are important to businesses because these markets provide access to funds necessary for growth and financing aspects of operations. There are two main financial markets: the money market and the capital market. The main players in the financial markets are: banks, which are the largest investment banks, financial and insurance companies, pensions/mutu...... middle of paper ..... Inventory is any stored resource such as work in progress, finished goods or raw materials that a business has on hand. Operating Cycle – describes the transaction of a company's working capital, from cash to inventory to receivables and back to cash. Accounts payable - these are trade debts, arising from the purchase of goods from suppliers, which have not yet been paid. Just-in-time [JIT] describes an inventory control system in which materials needed for production arrive just before use and do not require storage. Cost Center – is a unit within a company that is held responsible for costs within its area. Audit- is a formal examination of accounts to establish their truth and fairness. Ethics – is a system of moral principles that involves high standards and socially accepted standards of conduct.. ▲ ▲