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Stock holders stand to gain, and possibly lose, a great deal when a company embarks on new venture; this is why it is vital that stockholders be presented with clear concise information to vote on. Stockholders must understand and agree to the implications of the proposed change.
Should the stockholders vote in favor of the proposal financial planning will be the next step...
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Financial planning lays the framework for future financial decisions that the company will have to make;
Financial planning establishes guidelines for change in the firm. These guidelines should include (1) an identification of the firm's financial goals, (2) an analysis of the differences between these goals and the current financial status of the firm, and (3) a statement of the actions needed for the firm to achieve its financial goals...
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