Correct Answer: Strategic plan
 

Solution : The correct answer is (b) Strategic plan

A strategic plan is the most appropriate for guiding the overall direction and long-term goals of the organization. It involves making decisions about resource allocation, defining objectives, and setting strategies to achieve those objectives. In the case of ABC Retail Chain, a strategic plan would help outline the expansion goals, target markets, product range, and overall approach to achieving success in new areas.

Correct Answer: Debentures provide ownership rights
 

Solution : The correct answer is (a) Debentures provide ownership rights

Debentures represent a form of debt where the holders (debenture holders) are creditors to the company and do not possess ownership rights in the company. They are entitled to receive a fixed rate of interest and the repayment of the principal amount at maturity.

On the other hand, equity shares represent ownership in the company and provide shareholders with ownership rights, including voting rights and the right to share in the company's profits (through dividends). Unlike debentures, equity shares do not involve fixed interest payments or repayment at maturity.

Correct Answer: IPO (Initial Public Offering)
 

Solution : The correct answer is (a) IPO (Initial Public Offering)

An IPO is a process through which a private company goes public by offering its shares to the public for the first time. This allows the company to raise significant funds by selling ownership stakes (equity) to investors, which can then be used to fund expansion plans and other business initiatives, including global expansion. Going public through an IPO is a common approach for companies seeking to raise substantial capital for growth and expansion.

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 that "Financial planning contributes to maximizing the wealth of shareholders and stakeholders" is true. Financial planning involves strategic decisions aimed at optimizing financial resources and investments to achieve long-term growth and ultimately enhance the wealth of shareholders and stakeholders.

The reason that "Financial planning only considers short-term profitability and ignores long-term growth" is false. Financial planning encompasses both short-term and long-term financial goals. It involves planning for the future, considering long-term sustainability, growth, and the creation of shareholder value, not just short-term profitability. Financial planning aims to strike a balance between short-term gains and long-term objectives. It is designed to consider both short-term and long-term financial health and growth of the company.

Correct Answer: Privatization of public sector enterprises

Solution :  A key feature of the New Economic Policy of 1991 in India was the privatization of public sector enterprises, aimed at reducing the role of the government in the economy and promoting private investment.

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 is designed to contribute to maximizing shareholder wealth and company value. Through effective financial planning, a company can optimize its operations, investments, financing, and other aspects to enhance profitability and create value for shareholders.

Statement 2 is false. Financial planning does consider the interests of stakeholders, including shareholders. The objective of financial planning is to align financial decisions with the interests of various stakeholders, such as shareholders, investors, creditors, and the broader community. It's about balancing the interests of all parties involved in the business to achieve the best outcomes.

Correct Answer: Evaluating alternative courses of action
 

Solution : The correct answer is (a). Evaluating alternative courses of action

This evaluation involves assessing the feasibility, benefits, risks, and potential outcomes associated with each option. Through this process, the organization can make an informed decision on which course of action aligns best with its goals and objectives. Subsequently, after evaluating alternatives, the organization can move on to setting clear objectives and goals, identifying potential risks, and allocating resources based on the selected course of action.

Correct Answer: A lack of team work and a weakness for quick profit

Solution : The correct choice is the fourth option.

The weakness of traditional Indian firms, as mentioned in the passage, is that there is a lack of teamwork and a weakness for quick profit, which makes the fourth option the appropriate choice.

Correct Answer: Sourcing employees for new divisions

Solution : The correct answer is (c) Sourcing employees for new divisions

In this case, the main challenge for the HR department at XYZ Ltd. is sourcing employees for the new divisions. As the company plans to diversify its product range, the HR team will need to identify, attract, and recruit individuals with the necessary skills and qualifications to work in the new business areas. This involves talent acquisition strategies, such as recruitment and possibly training programs to ensure that the workforce is well-equipped for the expansion into different product lines.

Correct Answer: Planning Commission 

Solution : The correct option is Planning Commission.

The Planning Commission was officially established by the President of India to advise on the allocation of national resources between the central government and the states. The Planning Commission was instrumental in developing Five-Year Plans and awarding monies for different development projects and programmes. But in 2015, Planning commission was superseded by NITI Aayog.