Correct Answer: Planning comes before controlling.

Solution : The correct answer is (b) Planning comes before controlling.

In the traditional management process, planning typically comes before controlling. Planning involves setting objectives, goals, and strategies, while controlling follows to monitor and ensure that actual performance aligns with the established plans. This sequential order allows organizations like ABC Pharmaceuticals to establish a clear direction and then use control mechanisms to measure and adjust their activities to meet their planned objectives.

Correct Answer: Follow up action 

Solution : Planning is an ongoing process, the manager's job does not end simply by putting the plan into action. The managers closely monitor the plan's implementation. Monitoring the plan is critical because it helps to determine whether the conditions and predictions assumed in the plan are still valid in the current situation.
Hence, option 2 is the correct answer.

Correct Answer: Planning Commission 

Solution : The correct option is Planning Commission.

The Planning Commission of India was a non-constitutional and non-statutory body that played a significant role in formulating and implementing India's Five-Year Plans and advising the government on economic and developmental policies. It was not established by constitutional provisions but rather through an executive resolution of the Government of India in 1950.

Correct Answer: Commercial paper
 

Solution : The correct answer is (a) Commercial paper

Commercial paper is a short-term money market instrument used by corporations to raise funds for short-term financing needs. It is an unsecured, short-term debt instrument issued by corporations, including established companies like PQR Ltd., to meet short-term funding requirements. In the context of funding strategic alliance efforts, using commercial paper can provide PQR Ltd. with quick and efficient access to funds in the short term.

Correct Answer: Commercial paper

Solution : The correct answer is (d) Commercial paper

Commercial paper is a short-term debt instrument issued by corporations, typically with maturities ranging from a few days to a year. It is a common choice for businesses seeking short-term funds to finance various operational needs, including marketing initiatives in international markets. Commercial paper provides a cost-effective and efficient way to raise capital for short-term activities, making it suitable for funding marketing efforts in this context.

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, in the context of a company, aims to optimize the allocation of financial resources and make decisions that maximize shareholder wealth and enhance the overall value of the company. It involves strategies to increase profitability, manage risks, and create long-term value for shareholders.

Statement 2 is false. Financial planning does not ignore the interests of stakeholders. In fact, financial planning often takes into account the interests of various stakeholders, including shareholders, employees, customers, and the community. Effective financial planning considers a broader perspective, aligning the interests of stakeholders with the overall goals and sustainability of the business. Balancing the interests of stakeholders is an important aspect of responsible financial planning.

Correct Answer: Identifying potential risks
 

Solution : The correct answer is (b). Identifying potential risks

Identifying potential risks is a crucial step in the planning process as it allows the company to anticipate and mitigate potential challenges that may arise during the implementation of the chosen course of action. By identifying risks, PQR Software Solutions can develop strategies to address them effectively, ensuring a smoother and more successful implementation of the new customer support system.

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 involves the process of determining the most efficient and effective way to use available financial resources to achieve the goals and objectives of an individual or organization. It involves budgeting, investment planning, risk management, and other strategies to optimize the use of funds.

Statement 2 is false. Financial planning is not only concerned with short-term goals. It encompasses both short-term and long-term financial goals, considering the entire financial landscape and various timeframes. It involves planning for immediate needs as well as future financial stability and growth.

Correct Answer: The company has the option to buy back the debentures
    

Solution : The correct answer is (b) The company has the option to buy back the debentures

When debentures are labeled as "callable," it means that the issuing company has the right, but not the obligation, to buy back or redeem the debentures before their maturity date. Typically, there are specific terms and conditions outlined in the debenture agreement regarding when and how the company can exercise this option to call or buy back the debentures. This provides flexibility to the company to manage its debt and capital structure.