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
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
Correct Answer: Finance Commission
Solution : The correct option is the Finance Commission.
According to the Indian Constitution, the Finance Commission holds the status of a constitutional entity. with its primary responsibility being to provide recommendations regarding the allocation of financial resources between the central government and state governments. The
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
Correct Answer: Acquiring funds for business operations and expansion
Solution : The correct answer is (b) Acquiring funds for business operations and expansion
Business finance involves acquiring the necessary funds and managing financial resources to support a company's day-to-day operations, projects, and future growth. It encompasses activities related to budgeting,
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
Correct Answer: Reduced risk of fraud
Solution : The correct answer is (b) Reduced risk of fraud
The primary benefit of opening a demat account for trading securities is the reduced risk of fraud. A demat account holds your securities in an electronic or dematerialized form, eliminating the need for
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
Correct Answer: NITI Aayog
Solution : The correct answer is NITI Aayog.
Established in 2015 by the NDA government, NITI Aayog replaced the Planning Commission. The NITI Aayog council includes all state chief ministers, Chief Ministers of Delhi and Puducherry, Lieutenant Governors of Union Territories and a vice-chairman appointed
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