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 does arise due to risks and uncertainties associated with business operations. Businesses face various risks, including market volatility, competition, economic changes, and more. Managing these risks and uncertainties requires financial resources and strategies.

Statement 2 is false. Financial planning cannot eliminate all uncertainties in business activities. While financial planning helps in managing and mitigating risks to some extent, it cannot entirely eliminate uncertainties that are inherent to business operations. Financial planning aims to prepare and strategize for uncertainties rather than eliminating them.

Correct Answer: By utilizing profits accumulated over the years

Solution : The correct answer is (c) By utilizing profits accumulated over the years

Retained earnings are the accumulated profits that a company has retained and not distributed to shareholders as dividends. ABC Corporation can use these retained earnings to finance its expansion initiatives, such as investing in new projects, acquiring assets, expanding operations, or entering new markets. This form of financing doesn't involve issuing new shares, borrowing from financial institutions, or liquidating assets; instead, it relies on utilizing the company's internally generated profits.

Correct Answer: Achieving long-term financial goals

Solution : The correct answer is (c) Achieving long-term financial goals

Financial planning involves formulating strategies to manage finances effectively to attain long-term financial objectives. It encompasses various aspects such as budgeting, forecasting, investment planning, risk management, and aligning financial activities with the company's strategic goals. By focusing on long-term financial goals, PQR Enterprises aims to ensure sustainable growth, profitability, and financial stability over an extended period. 

Correct Answer: Both enable companies to raise capital in international markets

Solution : The correct answer is (d) Both enable companies to raise capital in international markets

GDRs and ADRs allow companies to access international capital markets by issuing their shares in the form of depository receipts. GDRs are traded outside the United States, and ADRs are traded in the United States. Both serve as instruments to raise capital by attracting investment from international investors and expanding the company's investor base beyond its home country.

Correct Answer: Long-term debt securities

Solution : The correct answer is (c) Long-term debt securities

Debentures are long-term debt instruments issued by companies or institutions to raise funds. Debenture holders are creditors to the company or institution and are entitled to receive periodic interest payments at a specified rate. The principal amount is repaid to debenture holders at maturity. Unlike equity shares debentures do not represent ownership in the company. They are a form of borrowing by the issuing entity. Additionally, debentures are not short-term borrowing or government-issued bonds .

Correct Answer: Both assertion and reason are false.

Solution : The correct answer is (d) Both assertion and reason are false.

The assertion that "Uncertainty and risks in business operations do not necessitate the need for finance" is false. Uncertainty and risks in business operations often increase the need for finance to manage and mitigate these risks effectively. Finance is crucial for creating a safety net and implementing strategies to deal with uncertainty and risks in business.

The reason that "Business finance only addresses short-term funding requirements" is false. Business finance encompasses both short-term and long-term funding requirements. It involves managing a company's financial resources and decisions related to investments, capital structure, budgeting, cash flow management, and financial planning for both short and long-term sustainability and growth.

Correct Answer: Preference shares pay higher dividends
 

Solution : The correct answer is (a) Preference shares pay higher dividends

Preference shares typically have fixed dividend rates, and shareholders holding preference shares are entitled to receive these fixed dividends before any dividends are distributed to equity shareholders. This characteristic often makes preference share dividends appear higher or more stable compared to the variable dividends associated with equity shares.

Correct Answer: NITI Aayog's Women Entrepreneurship Platform

Solution : The correct answer is NITI Aayog's Women Entrepreneurship Platform.

The Women Transforming India Awards is an annual initiative by NITI Aayog that aims to spotlight the remarkable contributions and pioneering efforts of women leaders and change-makers in India. The awards celebrate role models who have shattered barriers, making a positive impact on society. Since 2018, the Awards have been organized under NITI Aayog's Women Entrepreneurship Platform (WEP), with a particular emphasis on recognizing achievements in the field of entrepreneurship.

Correct Answer: Ownership in the company

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

Equity shares represent ownership or equity ownership in a company. Shareholders who hold equity shares have ownership rights in the company, which typically includes voting rights, the right to share in the company's profits (through dividends), and the right to participate in decision-making processes related to the company's operations and policies. Unlike debt securities (e.g., debentures), equity shares do not guarantee fixed dividend payments or redemption; instead, the dividend payments to equity shareholders are variable and based on the company's profitability and the decisions of the board of directors.

Correct Answer: No dilution of ownership
   

Solution : The correct answer is (a) No dilution of ownership

Retained earnings refer to the portion of a company's profits that are retained and reinvested in the business rather than distributed to shareholders as dividends. By utilizing retained earnings, a company can avoid dilution of ownership because it does not have to issue additional shares to raise funds. This allows the existing shareholders to maintain their ownership stakes in the company without the need for external financing or bringing in new shareholders.