Correct Answer: Both assertion and reason are correct, and the reason explains the assertion.
 

Solution : The correct answer is (a) Both assertion and reason are correct, and the reason explains the assertion.

The assertion is correct. Planning and controlling are indeed closely related functions in the management process, as they work together to ensure that an organization's objectives are met.

The reason is also correct and effectively explains the assertion. Planning typically involves setting goals and targets, and controlling involves assessing performance to see if those goals are being achieved.

Correct Answer: Measurable and specific goals

Solution : The correct answer is (c) Measurable and specific goals

Measurable and specific goals are essential characteristics of effective planning for several reasons. Measurable and specific goals provide clarity about what needs to be achieved. This clarity ensures that all stakeholders, including employees, understand the objectives and can work towards them with a shared understanding. Having measurable goals allows for clear accountability. Individuals or teams can be held accountable for specific outcomes, making it easier to assess performance and allocate resources effectively. Measurability enables the evaluation of progress. By having specific criteria for success, ABC Educational Institute can assess whether the goals are being met and make adjustments to the plan if necessary.

Correct Answer: A fixed dividend before equity shareholders

Solution : The correct answer is (c) A fixed dividend before equity shareholders

Preference shareholders are entitled to receive a fixed dividend at a predetermined rate before any dividend is paid to equity shareholders. This characteristic distinguishes them from equity shareholders, who may receive variable dividends based on the company's profitability and decisions made by the board of directors. However, preference shareholders typically do not have voting rights in the company's decisions, and their shares usually cannot be converted into debentures.

Correct Answer: Identifying potential risks

Solution : The correct answer is (c) Identifying potential risks

Identifying potential risks is a crucial step in the risk management process for any project, including a new product launch. This involves systematically analyzing the project to recognize any factors or events that may pose a threat to its success. By identifying potential risks early in the planning phase, XYZ Software Solutions can take proactive measures to mitigate or manage these risks effectively. Identifying potential risks involves a systematic assessment of the project to uncover any factors that could impact its success negatively.

Correct Answer: Statement 1 is false, and Statement 2 is true.

Solution : The correct answer is (d) Statement 1 is false, and Statement 2 is true.

Statement 1 is incorrect because planning is typically considered a forward-looking function of management. It involves setting future objectives and determining the best course of action to achieve those objectives. Planning is not primarily backward-looking; it's about anticipating and preparing for the future. Statement 2 is true as it accurately describes the process of planning in management.

Correct Answer: Operational plan
    

Solution : The correct answer is (b) Operational plan

Operational plan focuses on the short-term, day-to-day tasks and processes needed to achieve a specific objective. Implementing a new course involves detailed planning for curriculum development, staffing, marketing, enrollment, and delivery, making an operational plan the most appropriate choice.

Therefore, considering the specific task of introducing a new vocational course, an operational plan with detailed steps and actions is the most effective way for DEF Educational Institute to ensure smooth and successful implementation.

Correct Answer: Mergers and acquisitions

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

Expanding global operations through acquisitions is related to mergers and acquisitions (M&A). M&A involve the process of combining two or more companies through various financial transactions, such as acquisitions, mergers, consolidations, or purchases of assets, with the aim of achieving strategic goals like expanding into new markets, enhancing competitiveness, or achieving operational synergies. In this case, DEF Ltd.'s objective of global expansion aligns with the concept of mergers and acquisitions.

Correct Answer: To allocate funds for new ventures effectively

Solution : The correct answer is (d) To allocate funds for new ventures effectively

Financial planning is essential for diversification as it involves assessing the financial requirements of entering new business areas, determining the amount of funding needed, and devising a strategic plan to allocate funds efficiently. Effective financial planning helps in managing the resources, optimizing budgets, securing necessary financing, and ensuring that the new ventures are adequately funded for successful implementation. This ensures that the company's diversification efforts are financially sustainable and aligned with the broader strategic goals of the organization. Options a, b, and c are not directly related to the significance of financial planning for diversification.

Correct Answer: Planning is a primary function

Solution : Planning is the primary or first function to be performed by every manager. No other function can be executed by the manager without performing planning function because objectives are set up in planning and other functions depends on the objectives only.
Hence, option 1 is the correct answer.

Correct Answer: Financial planning

Solution : The correct answer is (c) Financial planning

Financial planning entails determining the company's financial goals and objectives and devising strategies to achieve them. Selecting the right sources of funds is a crucial aspect of financial planning, as it involves evaluating and choosing the most suitable options for obtaining the necessary funds to support the business's operations, growth, and expansion. This decision is essential for ensuring the financial health and sustainability of the company.