Planning
Question : Questions : Business Finance and Its Meaning
Statement 1: Financial planning assists in optimal allocation of resources for business activities.
Statement 2: Financial planning solely focuses on short-term goals.
Option 1: Statement 1 is true, and statement 2 is false.
Option 2: Statement 1 is false, and statement 2 is true.
Option 3: Both statements 1 and 2 are true.
Option 4: Both statements 1 and 2 are false.
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
Question : Case Study 85
GHI Corporation is a startup planning to trade its shares on a stock exchange. The company's management is reviewing the roles of stock exchanges.
Question :
What is the primary function of a stock exchange?
Option 1: Allocating resources to companies
Option 2: Regulating credit rating agencies
Option 3: Facilitating trading of securities
Option 4: Preventing insider trading
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
Question : Questions: Business Finance and Its Meaning
Statement 1: Financial planning involves allocating funds to various business activities.
Statement 2: Financial planning does not consider long-term business goals.
This statement is true. One of the key goals of financial planning is to ensure that a business has the resources it needs
Question : Comprehension:
Read the given passage and answer the questions that follow.
Such examples of commercial success, innovation, drive, vision, determination, adaptability, and adventure are anchored in the basic Indian openness to, and talent for, acquiring material wealth. For every success story, there are, of course, dozens of failures. Traditional Indian firms have their strengths, but also their weaknesses, and of these perhaps the most debilitating are a lack of teamwork and a weakness for a quick profit. These reflect ingrained ways of thinking and planning, as does the distrust of anyone outside the family, which inhibits the adoption of modern practices of management. But such weaknesses are more than compensated for by the desire to succeed, which is probably more intense in India, given the omnipresent fear of poverty, the cut-throat competition for each opportunity, and the asphyxiating hold of hierarchy.
Question: What has the Indian talent for acquiring material wealth led to?
Option 1: Commercial success, stagnation, innovation
Option 2: Adaptability, quick profit, opportunity
Option 3: Commercial success, innovation, adaptability
Option 4: Determination, team work, adventure
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
Question : The first step in the planning process is:
Option 1: Implementing the plan
Option 2: Evaluating the plan
Option 3: Setting objectives
Option 4: Monitoring the plan
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
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
Which source of business finance involves raising funds by issuing ownership shares?
Option 1: Debentures
Option 2: Retained earnings
Option 3: Equity shares
Option 4: GDRs
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
Question : What is the relationship between planning and controlling?
Option 1: Planning and controlling are unrelated.
Option 2: Planning comes before controlling.
Option 3: Controlling comes before planning.
Option 4: Planning and controlling are simultaneous processes.
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
Question : Which of the following management concepts has anything to do with planning?
Option 1: Discipline
Option 2: Authority and responsibility
Option 3: Unity of Command
Option 4: Initiative
Correct Answer: Initiative
Solution : Initiative refers to encouraging staff members to be proactive and take the initiative in their work. This principle is crucial for planning since it motivates staff to develop fresh concepts and strategies to increase effectiveness and productivity at work.
Hence, Option D is correct.
Question : Case Study 3:
MNO Inc. is a well-known conglomerate that is planning to diversify its business operations by acquiring other companies.
MNO Inc. is interested in acquiring other companies to diversify its business. Which market activity would be involved in this scenario?
Option 1: Treasury bill trading
Option 2: Commercial paper issuance
Option 3: Mergers and acquisitions
Option 4: Government bond trading
Correct Answer: Mergers and acquisitions
Solution : The correct answer is (c) Mergers and acquisitions
MNO Inc.'s interest in acquiring other companies to diversify its business involves the market activity of mergers and acquisitions (M&A). Mergers and acquisitions refer to the process of combining two or more companies or business
Question : The feature of systematic planning and control in scientific management emphasizes:
Option 1: Autonomy for employees
Option 2: Random decision-making
Option 3: Proactive monitoring and evaluation
Option 4: Limited feedback mechanisms
Correct Answer: Proactive monitoring and evaluation
Solution : The correct answer is (c) Proactive monitoring and evaluation.
Systematic planning and control in scientific management involves carefully designing and implementing plans, procedures, and control mechanisms to ensure that work is carried out efficiently and effectively. It emphasizes proactive monitoring and evaluation
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