Planning
Question : Assertion: The management functions of planning, organizing, leading, and controlling are interrelated and interdependent.
Reason: Each function supports and complements the others to achieve organizational goals.
Option 1: Both assertion and reason are correct, and the reason explains the assertion.
Option 2: Both assertion and reason are incorrect.
Option 3: The assertion is correct, but the reason is incorrect.
Option 4: The assertion is incorrect, but the reason is correct.
Option 5: Both assertion and reason are correct, and the reason is not the correct explanation of the assertion.
Correct Answer: Both assertion and reason are correct, and the reason explains the assertion.
Solution : The correct answer is (a) Both assertion and reason are correct, and the reason explains the assertion.
The assertion is correct. These management functions are closely connected and often overlap in practice. Effective management
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 is the main idea or theme of this passage?
Option 1: Telangana's yields of paddy have exceeded all expectations.
Option 2: Recently, Telangana has seen a huge increase in the quantity of agricultural products.
Option 3: The state of Telangana has emerged as a significant contributor to the growth of agriculture in the country.
Option 4: Telangana has already become the 'Rice Bowl of India'.
Correct Answer: The state of Telangana has emerged as a significant contributor to the growth of agriculture in the country.
Solution : The correct option is the third option.
Explanation: The passage highlights Telangana's impressive growth in agricultural yields, specifically in paddy, maize, and cotton production. It mentions Telangana's contribution
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
In the context of financing, what are debentures?
Option 1: Equity shares with voting rights
Option 2: Short-term borrowing from banks
Option 3: Long-term debt securities
Option 4: Government-issued bonds
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
Question : Case Study: ABC Retail Chain
ABC Retail Chain is a popular brand with multiple stores across the country. They are planning to expand their product range by adding organic and eco-friendly products. Question: The type of plan that ABC Retail Chain should develop to expand their product range is:
Option 1: Strategic plan
Option 2: Operational plan
Option 3: Contingency plan
Option 4: Tactical plan
Correct Answer: Strategic plan
Solution : The correct answer is (a). Strategic plan
A strategic plan is designed to provide a roadmap for the overall direction and goals of the organization. In the case of ABC Retail Chain expanding their product range, a strategic plan would help outline the long-term
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 : Different Sources of Business Finance
XYZ Ltd. is considering borrowing funds by issuing long-term debt securities. What are these securities called?
Option 1: Equity shares
Option 2: Preference shares
Option 3: Debentures
Option 4: ADRs
Correct Answer: Debentures
Solution : The correct answer is (c) Debentures
Debentures are long-term debt instruments issued by companies to raise funds from the public or institutional investors. Holders of debentures are creditors of the company and are promised a fixed rate of interest and repayment of the principal amount
Question : Case Study 3:
MNO Inc. is a well-known conglomerate that is planning to diversify its business operations by acquiring other companies.
Question :
To finance its acquisition plans, MNO Inc. is considering issuing bonds. What type of market activity does this represent?
Option 1: Primary market
Option 2: Secondary market
Option 3: Money market
Option 4: Capital market
Correct Answer: Primary market
Solution : The correct answer is (a) Primary market
If MNO Inc. is considering issuing bonds to finance its acquisition plans, it represents a primary market activity. The primary market is where new securities, such as bonds and stocks, are issued for the first time and
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.
Correct Answer: Assertion is true, but the reason is false.
Solution : The correct answer is (c) Assertion is true, but the reason is false.
The assertion is true. Financial planning involves efficiently allocating funds and resources to various activities within a business, aiming to achieve the company's financial goals
Question : Case Study 80
LMN Corporation is a well-established company planning to raise funds for its expansion projects. The company's management is considering the regulatory functions of SEBI.
What is the primary regulatory role of SEBI?
Option 1: Allocating resources to companies
Option 2: Facilitating trading on stock exchanges
Option 3: Protecting the rights of investors
Option 4: Providing loans to companies
Correct Answer: Protecting the rights of investors
Solution : The correct answer is (c) Protecting the rights of investors
The primary regulatory role of the Securities and Exchange Board of India (SEBI) is to protect the rights of investors. SEBI is the regulatory body for the securities market in India.
Question : Which of the following statement is correct? Statement 1- Manpower planning belongs to staffing function of management. Statement 2- Division of activities and creation of organisational structure belongs to organising function of management.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 2 is true and statement 1 is false.
Correct Answer: Both are true
Solution : Manpower planning belongs to staffing function of management. Division of activities and creation of organisational structure belongs to organising function of management. Hence option A is correct .
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