Correct Answer: Mergers and acquisitions

Solution : The correct answer is (c) Mergers and acquisitions

Diversifying into the healthcare industry often involves strategic moves like mergers and acquisitions, where LMN Corporation may acquire existing healthcare businesses or merge with healthcare-related companies to expand its operations and presence in this new sector. Mergers and acquisitions are common strategies for corporations looking to enter new markets and diversify their business portfolio.

Correct Answer: By allocating funds effectively for green projects
  

Solution : The correct answer is (b) By allocating funds effectively for green projects

Financial planning involves allocating financial resources in a strategic manner to support the company's objectives and initiatives. In the context of sustainability, UVW Industries can allocate funds specifically for green projects that align with their sustainable initiatives. This includes budgeting and financial forecasting to ensure that adequate funds are set aside for research, development, implementation, and maintenance of eco-friendly practices and projects.

Correct Answer: Instruments for raising funds in foreign markets

Solution : The correct answer is (d) Instruments for raising funds in foreign markets

GDRs and ADRs are financial instruments that represent shares of a foreign company and are traded on international stock exchanges. They allow companies like XYZ Ltd. to raise funds from investors in foreign markets without directly listing their shares on those markets. GDRs are typically issued outside the United States, while ADRs are issued in the United States. Both GDRs and ADRs facilitate access to a broader base of international investors and provide a way to raise capital by issuing shares to investors in different parts of the world.

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. Financial planning does assist in the optimal allocation of financial resources for various business activities. It involves planning for both short-term and long-term financial goals to ensure efficient use of resources.

Statement 2 is false. Financial planning is not solely focused on short-term goals. It encompasses a comprehensive approach, including both short-term and long-term financial objectives. Effective financial planning considers the long-term sustainability and growth of the business, not just short-term gains.

Correct Answer: Facilitating trading of securities

Solution : The correct answer is (c) Facilitating trading of securities

The primary function of a stock exchange is to facilitate the trading of securities. Stock exchanges provide a marketplace where buyers and sellers can come together to buy and sell shares, bonds, and other financial instruments. They offer a platform for transactions to occur in a regulated and transparent manner, ensuring fair pricing and efficient execution of trades. The stock exchange acts as an intermediary that helps in matching buy and sell orders, providing liquidity, and maintaining an organized and efficient market for securities trading.

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.

This statement is true. One of the key goals of financial planning is to ensure that a business has the resources it needs to operate and grow. This involves allocating funds to different business activities.

This statement is false. Financial planning should always consider a business's long-term goals. This is because financial decisions today will have a significant impact on the business's ability to achieve its long-term goals in the future.

Correct Answer: Commercial success, innovation, adaptability

Solution : The correct choice is the third option.

The first line of the passage mentioned explicitly some examples such as commercial success, innovation, adaptability, drive, vision, etc. that have led India to acquire material wealth, which makes the third option the appropriate choice for the question.

Correct Answer: Setting objectives

Solution : The correct answer is (c) Setting objectives.

Setting objectives is the initial step in the planning process. It involves defining specific, measurable, achievable, relevant, and time-bound (SMART) goals that the organization or individual wants to achieve. Objectives provide a clear direction and purpose for the planning process and serve as a guide for subsequent planning activities.

Correct Answer: Equity shares

Solution : The correct answer is (c) Equity shares

Equity shares represent ownership in a company and provide ownership rights and claims on the company's assets and earnings. When a company issues equity shares, it is essentially selling ownership stakes to investors, allowing them to become shareholders and participate in the company's growth and success. This is a common way for companies to raise funds for their operations, expansions, or other financial needs.

Correct Answer: Planning and controlling are simultaneous processes.

Solution : The correct answer is (d) Planning and controlling are simultaneous processes.

Planning and controlling are two essential functions of management that go hand in hand. They are interrelated and occur simultaneously in the management process. Planning involves setting goals, identifying actions and strategies to achieve those goals, and creating a roadmap for how to proceed. It is the process of determining what needs to be done, when, how, and by whom. Planning provides a framework for decision-making and resource allocation.

Controlling, on the other hand, involves monitoring the actual performance of activities and comparing it against the planned goals. It involves measuring, evaluating, and taking corrective actions to ensure that the planned objectives are being achieved. Controlling helps to ensure that the plans are implemented effectively and efficiently.