Correct Answer: Rights Issue

Solution : The correct answer is (c) Rights Issue

A rights issue involves a company issuing new shares to its existing shareholders. These existing shareholders are given the right to purchase additional shares in proportion to their existing ownership. This method allows the company to raise additional capital from its current investors before offering the remaining shares to the public, making it an efficient way to raise funds while maintaining the ownership structure.

Correct Answer: Statement 1 is true, and statement 2 is false.
   

Solution : The correct answer is (a) Statement 1 is true, and statement 2 is false.

Statement 1 is true. The need for business finance often arises due to various risks and uncertainties associated with business activities. Risks such as market fluctuations, economic changes, competition, regulatory changes, and more can impact a business's financial stability and necessitate financial planning and management to mitigate these risks.

Statement 2 is false. Financial planning aims to manage and mitigate risks but does not eliminate all uncertainties in business operations. While it helps in forecasting, budgeting, and strategizing to minimize risks, it cannot completely eliminate uncertainties, as the business environment is dynamic and subject to various unpredictable factors.

Correct Answer: Financial planning

Solution : The correct answer is (c) Financial planning

Financial planning entails determining the company's financial goals and objectives and devising strategies to achieve them. Selecting the right sources of funds is a crucial aspect of financial planning, as it involves evaluating and choosing the most suitable options for obtaining the necessary funds to support the business's operations, growth, and expansion. This decision is essential for ensuring the financial health and sustainability of the company.

Correct Answer: Prime Minister

Solution : The correct answer is Prime Minister.

NITI Aayog stands for National Institution for Transforming India. It is the apex policy think tank of the Government of India. It replaced the Planning Commission on January 1, 2015. The Prime Minister of India serves as the ex-officio chairperson of the NITI Aayog. Currently, Narendra Modi is the ex-officio chairperson of the NITI Aayog.

Correct Answer: Ownership in the company
 

Solution : The correct answer is (b) Ownership in the company

Equity shares represent ownership in a company, conferring the shareholder with ownership rights and an ownership stake in the company. Equity shareholders have a claim on the company's assets and earnings and typically have voting rights, allowing them to participate in key decisions and the governance of the company. Unlike debt instruments such as debentures, equity shares do not entail fixed dividend payments or guaranteed redemption. Instead, dividends to equity shareholders are subject to profitability and the decisions of the company's board of directors.

Correct Answer: Finance Secretary, Governor of RBI

Solution : The correct answer is (c) Finance Secretary, Governor of RBI.

In India, the 1 rupee note bears the signature of the Finance Secretary, while other currency notes bear the signature of the Governor of the Reserve Bank of India (RBI). The Finance Secretary is a senior government official responsible for financial matters, while the Governor of RBI is the head of the central bank and is responsible for formulating and implementing monetary policies in the country.

Correct Answer: Finance Minister

Solution : The correct answer is (d) Finance Minister.

The Finance Minister of India, who is a part of the central government, presents the annual budget in the Parliament. The budget presentation takes place in the Lok Sabha (the lower house of the Parliament) on a designated day, usually at the beginning of February. The Finance Minister outlines the government's fiscal policies, revenue and expenditure plans, and other financial matters for the upcoming financial year.

The Finance Minister plays a crucial role in formulating and presenting the budget, which is a significant event in the country's fiscal calendar. The budget announcement provides insights into the government's priorities, policy initiatives, and resource allocations for various sectors.

Correct Answer: To fund its expansion plans and meet capital requirements

Solution : The correct answer is (d) To fund its expansion plans and meet capital requirements

Expanding operations in a business often requires substantial capital investment for various purposes, such as acquiring new assets, increasing production capacity, entering new markets, hiring additional staff, and covering increased operational expenses. Business finance is essential to provide the necessary funding to support these expansion initiatives and ensure the company's growth and sustainability in the market.

Correct Answer: Maximizing shareholder wealth
   

Solution : The correct answer is (a) Maximizing shareholder wealth

Financial planning in a corporation involves strategies and actions aimed at optimizing the use of financial resources to achieve long-term goals and ultimately enhance shareholder wealth. It encompasses planning for investments, managing cash flows, optimizing capital structure, and making informed financial decisions to increase profitability, drive growth, and maximize the value of the business for its shareholders. While meeting daily operational expenses and ensuring efficient resource utilization are important aspects of financial planning, the overarching objective is to create value and wealth for the shareholders.

Correct Answer: President

Solution : The correct option is President.

The President of India appoints the Comptroller and Auditor General (CAG). The CAG is appointed on the Prime Minister's proposal after consultation with different authorities, including the Speaker of the Lok Sabha, the Chairman of the Rajya Sabha, and the Public Accounts Committee.