Planning
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Question : 'To evaluate such proposal detailed calculation of earning, earning per share, interest, taxes, dividends are made and decisions taken' Identify the step of planning function of management is highlighted above.
Option 1: Selecting an alternative
Option 2: Setting objective
Option 3: Follow up action
Option 4: Evaluating alternative courses
Correct Answer: Evaluating alternative courses
Solution : After creating a list of various alternatives and the assumptions that support them, the manager begins evaluating each alternative and noting the positive and negative aspects of each alternative. The evaluation of alternative courses is discussed in the preceding case. Hence, option 4
Question : Assertion-Reason Questions: Chapter - Sources of Business Finance
Questions : Business Finance and Its Meaning
Assertion: Financial planning aims to maximize shareholder wealth and company value.
Reason: Financial planning does not consider the interests of stakeholders.
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.
Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Financial planning is the process of creating a roadmap
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