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.

Question : Which among the following is a constitutional body as per the Indian Constitution? 

Option 1: Finance Commission

Option 2: National Development Council

Option 3: Planning Commission

Option 4: None of these

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 : Meaning and Need for Business Finance

What is the meaning of business finance?

Option 1: Managing human resources in a business
 

Option 2: Acquiring funds for business operations and expansion
 

Option 3: Developing marketing strategies for business growth

Option 4: Implementing technology solutions in a business

Question : Case Study 76

DEF Enterprises is a startup planning to trade its shares on a stock exchange. The company's management is considering the importance of opening a demat account.

Question : 

What is the primary benefit of opening a demat account for trading securities?

Option 1: Higher dividend payouts
 

Option 2: Reduced risk of fraud
 

Option 3: Access to insider information

Option 4: Lower income tax rates

Question : In 2015, the Planning Commission was replaced with the _____.

Option 1: Monetary Policy Committee

Option 2: Competition Commission of India

Option 3: NaBFID

Option 4: NITI Aayog

Question : Case Study 76

DEF Enterprises is a startup planning to trade its shares on a stock exchange. The company's management is considering the importance of opening a demat account.

Question : 

What is the primary benefit of opening a demat account for trading securities?

Option 1: Higher dividend payouts
 

Option 2: Reduced risk of fraud
 

Option 3: Access to insider information

Option 4: Lower income tax rates

Question : Case Study: ABC Educational Institute

ABC Educational Institute is a reputed school with a large student population. The management is planning to introduce a new curriculum to meet the changing educational needs.

Question:

The characteristic of effective planning that ABC Educational Institute should consider is:

Option 1: Lack of employee involvement
   

Option 2: Ambiguous objectives
 

Option 3: Measurable and specific goals

Option 4: Ignoring external opportunities

Question : Case Study 24:

JKL Ltd. is a conglomerate planning to acquire a startup in the artificial intelligence sector to enhance its technology offerings.

Question : 

To finance the acquisition of the AI startup, JKL Ltd. is considering issuing bonds. What type of market activity is this?

Option 1: Primary market
 

Option 2: Secondary market
 

Option 3: Money market trading

Option 4: Equity share issuance

Question : Comprehension:
Read the given passage and answer the questions that follow.
With an impressive growth in yields, Telangana now claims to be transforming into the rice bowl of India. The Food Corporation of India (FCl) has procured 52 lakh tonnes of paddy from Telangana alone, which is more than half of the national target of 91 lakh tonnes. The state's harvests have nearly doubled in a year. Paddy production is up 93%, maize 95%, and cotton 74%, according to the Telangana Planning Department.

The state is also making its mark as a producer of paddy seed. "About 85% of our village's paddy is of a fine variety that farmers in MP, Haryana, Bengal, and Bihar use as seed," said a farmer in Anksapur Village in Nizamabad district. The seed crop sells at a premium over the state's minimum support price for paddy.

Question:
What are the main crops of Telangana, according to the details in the passage?

Option 1: Paddy seed, cotton, and maize

Option 2: Rice, paddy, and cotton

Option 3: Paddy, paddy seed, and maize

Option 4: Cotton, maize, and paddy

Question : Case Study 2:

XYZ Ltd. is a well-established pharmaceutical company that is planning to diversify its product range. The HR department is faced with the challenge of sourcing and training employees for the new divisions. Evaluate the following scenarios and choose the correct option:

Question:

The HR department at XYZ Ltd. plans to use group discussions and interviews to assess candidates' communication skills and teamwork abilities. What aspect of staffing does this represent?

Option 1: Recruitment
   

Option 2: Selection
  

Option 3: Training and development

Option 4: Performance appraisal