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Sanjiv was developing a business plan for his organization. While working on the financial plan he realised that his financial requirements will be for fixed assets and their installations, preliminary expenses, working capital, expenses on research and development and investment in short-term assets viz. raw material, level of cash, etc. To decide on the sources of funds for the venture, he tried to ensure the selection of the best overall mix of financing for the enterprise. 

a. Identify the elements of financial plan discussed here. 

b. Why is it important for an entrepreneur to ensure the selection of the best overall mix of financing for the enterprise?

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a. (a) Proforma investment decisions 

(b) Proforma financing decisions 

(b) The entrepreneur's job is to ensure the selection of the best overall mix of financing for the enterprise so that: 

(a) the cost of capital and the financial risk stands minimized, 

(b) return on investment and profitability stands maximized. 

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