Answer:$1$

The necessity of short$-$term and long$-$term forecasting for developing the key elements of the business plan : This is very essential element for the business plant to develop the key elements of the business plan which are based on the short term and long term forecasting approach. So it is very essential that the organization has the short term and long term forecasting approach which is helpful in developing the key element for the business plan.

Necessity of short term forecasting: This approach or process is very helpful as below

Short term forecasting process helps for identifying the elements which are essential for the success and growth of the business in short term period.

Short term forecasting process will help in developing the key elements which help the success and growth of the business in short term.

This provides the short term vision for the business plan.

This short term forecasting approach will help to develop the business plan which will be suitable for the short term requirements.

This is a strategic approach helps for the business.

Necessity of long term forecasting: This approach or process is very helpful as below

Long term forecasting process helps for identifying the elements which are essential for the success and growth of the business in long term period.

Long term forecasting process will help in developing the key elements which will help for the business to achieve its success and growth for the long term period.

Long term forecasting is helpful for the business plan and it provides the direction to the business plan for the long term duration, so that the business plan can be drived in that direction and approach.

The long term forecasting approach is help for developing the key elements which will develop the platform for the business plan so that the business plan will help the organization to survive in long term duration.

This will be the strategic approach for the business.