Question

Question 7 After completing your MBA, three friends who knew ds who knew you did a course in financial planning came to you with some issues as follows: 2. The first of them, Jones Kugblenu. He told you he had been billed for a jo for the position of a financial planner. He wants you to explain the following to nie d you he had been billed for a job interview him prepare: i. The relevance of financial planning The functions of a financial planner ii. The short, medium and long term modes of financial planning iv. The financial questions to ask before undertaking an investing v. The qualities of a good financial information. The second friend, Kwesi Koomson, is in Ghana, married to Djifa and they have one whild They are living in a three-bed-room apartment. He told you he is facing financial challenges. When you went through his diary, you found the following: . Rent in arrears for three months - (Ghc2,000) per month; • Loan from GCB, Ghc100,000 - Ghc1,250 to be paid per month (2 months defaulted) • Loan from the office Credit Union Ghc20,000 - Ghc1,000 deducted monthly Unpaid fees for the first term - Ghc5,200 Debt on various gadgets bought on credit by Djifa, Ghc6,000 Suggest any FOUR areas you would touch to help Kwesi Koomson come out of financial pressure

Answer 1

a)

1) The relevance in FInancial Planning

  Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals. ... Tax planning, prudent spending and careful budgeting will help you keep more of your hard earned cash. Capital: An increase in cash flow, can lead to an increase in capital..

2) Functions of financial planner.

• Prepare sound financial plans to ensure clients meet their goals.
• Advise clients on current financial issues and make recommendations.
• Generate new business and build relationships.

3) Short term medium term and long terms modes of financial planning.  

Short-term usually involves processes that show results within a year.

Companies aim medium-term plans at results that take several years to achieve.

Long-term plans include the overall goals of the company set four or five years in the future and usually are based on reaching the medium-term targets.

in short,

• Short-term financial plan is prepared for maximum one year. This plan looks after the working capital needs of the company.
• Medium-term financial plan is prepared for a period of one to five years. ...
• Long-term financial plan is prepared for a period of more than five years.

4)   

Don't even think about investing your hard-earned money before sorting out these questions:

• What is your investment goal? ...
• What is your risk tolerance? ...
• What happens if this investment goes to zero? ...
• What is your investment time frame? ...
• When and why will I sell this investment? ...
• Where to invest?.

5)

To meet the needs of parties, the financial statements should have the following qualities.

• Simplicity. It is necessary to have simplicity in financial statements. ...
• Relevance. ...
• Comparability. ...
• Understandability. ...
• Completeness. ...
• Accuracy. ...
• Promptness. ...
• Reliability.

b)

The four areas that would help Kwesi koomson to come out of financial pressure are;

• The first are is the loan from GCB . the loan is defaulted for 2 months so it should be immediately cleared because one more default in loan would make it a Non performing asset