Question : Assertion-Reason Questions: Chapter - Sources of Business Finance

Questions : Business Finance and Its Meaning

Assertion: Financial planning plays a critical role in optimizing the allocation of funds and resources.

Reason: Financial planning focuses solely on allocating funds to marketing activities.

Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
   

Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
   

Option 3: Assertion is true, but the reason is false.

Option 4: Both assertion and reason are false.

Question : Case Study: ABC Corporation - Financing Growth Strategies

ABC Corporation, a leading manufacturing company, is looking to finance its growth strategies. The company is exploring various sources of business finance to achieve its expansion goals.

Questions : Business Finance and Expansion

What does the term "business finance" refer to?

Option 1: Acquiring funds for personal expenses
 

Option 2: Managing company personnel
 

Option 3: Investing in stock markets

Option 4: Obtaining funds for business operations and growth

Question : Case Study: UVW Industries - Sustainable Financing for Green Initiatives

UVW Industries is a company committed to sustainable practices and is undertaking environmentally friendly initiatives. The company is exploring various sources of business finance to support its green projects.

Questions : Business Finance and Sustainability

In the context of business finance, how does sustainability impact a company like UVW Industries?

Option 1: It focuses on reducing innovation efforts
  

Option 2: It increases operational costs
 

Option 3: It promotes environmentally friendly projects

Option 4: It eliminates the need for external financing

Question : Case Study: PQR Enterprises - Funding Strategies for Diversification

PQR Enterprises is a well-established conglomerate planning to diversify its business operations. The company is evaluating various sources of business finance to support its diversification plans.

Questions : Different Sources of Finance

What are GDRs and ADRs, which PQR Enterprises is considering as potential sources of finance?

Option 1: Employee performance metrics
    

Option 2: International financial regulations
    

Option 3: International financial instruments

Option 4: Strategies for reducing operational costs

Question : Questions : Business Finance and Its Meaning

Statement 1: Need for business finance arises due to various risks and uncertainties in business activities.

Statement 2: Financial planning eliminates all uncertainties in business operations.

Option 1: Statement 1 is true, and statement 2 is false.
   

Option 2: Statement 1 is false, and statement 2 is true.
  

Option 3: Both statements 1 and 2 are true.

Option 4: Both statements 1 and 2 are false.

Question : Case Study: XYZ Ltd. - Raising Finance for Expansion

XYZ Ltd. is a growing company that manufactures electronic gadgets. The company has been successful in the market and is planning to expand its operations. To finance this expansion, XYZ Ltd. is considering various sources of business finance.

Questions : Equity Shares and Preference Shares

What is the main characteristic of equity shares?

Option 1: Fixed dividend payments
 

Option 2: No voting rights
 

Option 3: Ownership in the company

Option 4: Guaranteed redemption

Question : Case Study 32

UVW Inc. is a technology startup aiming to raise funds for its innovative projects. The company's management is considering different methods of raising capital from the capital market.

Question:

If UVW Inc. chooses to issue new shares to the public, what is this process called?

Option 1: IPO (Initial Public Offering)
 

Option 2: Follow-on Public Offering (FPO)
 

Option 3: Private Placement

Option 4: Rights Issue

Question : Identify the principle of management violated in the below case.
The marketing manager has asked his subordinate to grant 15% discount to its regular customer where as the finance minister asked not to give more than 10% discount to any customer. 

 

Option 1: Unity of direction
 

Option 2: Unity of command
 

Option 3: Division of work
 

Option 4: Scaler chain
 

Question : Comprehension

In the following passage, some words have been deleted. Fill in the blanks with the help of the alternatives given. Select the most appropriate option for each blank.

Unemployment is a major issue in India that (1)________millions of people across the country. Despite being one of the fastest-growing economies in the world, India has struggled to create (2)________jobs to keep up with its rapidly expanding population. The unemployment rate in India varies widely (3)________ different states and regions. Young people, in particular, face significant challenges in finding employment. Many are highly educated but lack the skills and experience needed to (4)________ in a highly competitive job market. There are many factors contributing to the high levels of unemployment in India. Some of these include a lack of investment in infrastructure, a mismatch between the skills of workers and the needs of employers, and a lack of access to finance for small and medium-sized businesses. The Indian government has launched several initiatives to address the issue of unemployment in the country. These include programs to support small businesses, increase investment in infrastructure and provide vocational training to young people. However, much more needs to be done to create sustainable, long-term employment opportunities for all Indians. Unemployment can have serious social and economic consequences, including poverty, crime and social (5)________.

Select the most appropriate option to fill in blank no. 3.

Option 1: from

Option 2: between

Option 3: across

Option 4: amongst

Question : Case Study: ABC Corporation - Financing Growth Strategies

ABC Corporation, a leading manufacturing company, is looking to finance its growth strategies. The company is exploring various sources of business finance to achieve its expansion goals.

Questions : Equity Shares and Preference Shares

If ABC Corporation issues non-cumulative preference shares, what does this mean?

Option 1: Dividends on these shares must be paid before equity shareholders
  

Option 2: The company cannot issue any more preference shares
 

Option 3: Dividends on these shares can be postponed

Option 4: Shareholders have no voting rights