Planning
Question : Questions : Business Finance and Its Meaning
Statement 1: Need for business finance arises due to uncertainties and risks in business operations.
Statement 2: Financial planning eliminates all uncertainties in business activities.
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. The need for business finance often arises due to uncertainties and risks in business operations. Businesses need financial resources
Question : Assertion-Reason Questions: Chapter - Sources of Business Finance
Questions : Business Finance and Its Meaning
Assertion: Financial planning ensures optimal utilization of funds and avoids wastage.
Reason: Financial planning does not consider long-term business goals.
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: 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 is true. Financial planning involves creating a strategic plan to manage funds efficiently, allocate resources appropriately, and achieve financial goals while minimizing
Question : Directions: A series is given with one term missing. Choose the correct alternative from the given ones that will complete the series. ?, Planning, Strategy, Marketing, Finance
Option 1: Realization
Option 2: Success
Option 3: Failure
Option 4: Idea
Correct Answer: Idea
Solution : Given: ?, Planning, Strategy, Marketing, Finance
To start a business, we need to come up with an idea, plan accordingly, strategize to implement the idea, identify target markets, and consider the finances required throughout the entire process. So, the order of steps of the startup
Question : Case Study 72
OPQ Corporation is a conglomerate planning to trade its shares on a stock exchange. The company's management is reviewing the roles of stockbrokers.
Question :
OPQ Corporation has engaged a broker to facilitate its share trading. What is the role of a broker in the stock market?
Option 1: Listing companies on stock exchanges
Option 2: Setting interest rates
Option 3: Matching buy and sell orders
Option 4: Issuing new sharess
Correct Answer: Matching buy and sell orders
Solution : The correct answer is (c) Matching buy and sell orders
A broker in the stock market facilitates the buying and selling of securities by acting as an intermediary between buyers and sellers. Their primary role is to match buy and sell
Question : Case Study: PQR Educational Institute
PQR Educational Institute is a well-reputed school offering various academic programs. They are planning to introduce new co-curricular activities to enhance students' overall development.
Question:
The characteristic of effective planning that PQR Educational Institute should consider is:
Option 1: Lack of alignment with organizational goals
Option 2: Ambiguous and vague objectives
Option 3: Measurable and specific goals
Option 4: Lack of flexibility in decision making
Correct Answer: Measurable and specific goals
Solution : The correct answer is (c) Measurable and specific goals
Effective planning involves setting clear, measurable, and specific goals. Measurable and specific goals provide a clear direction for the organization, facilitate decision-making, and allow for objective assessment of progress. In the context of
Question : Assertion: The population growth rate in India is declining over the years.
Reason: Government initiatives such as family planning programs have contributed to a decrease in the fertility rate.
Option 4: Assertion is false, but the reason is true.
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.
The assertion is true. India has indeed witnessed a
Question : Case Study 2:
XYZ Ltd. is a well-established pharmaceutical company that is planning to diversify its product range. The HR department is faced with the challenge of sourcing and training employees for the new divisions. Evaluate the following scenarios and choose the correct option:
To identify potential leaders within the organization, XYZ Ltd. is conducting a series of leadership workshops and assessments. What staffing process is this indicative of?
Option 1: Recruitment
Option 2: Selection
Option 3: Training and development
Option 4: Performance appraisal
Correct Answer: Training and development
Solution : The correct answer is (c) Training and development
When XYZ Ltd. conducts a series of leadership workshops and assessments to identify potential leaders within the organization, it is indicative of the training and development aspect of staffing. This process is focused on enhancing
Question : Case Study 20:
PQR Inc. is a conglomerate planning to acquire a pharmaceutical company to diversify its business.
To fund the acquisition of the pharmaceutical company, PQR Inc. is considering issuing bonds. What type of market activity is this?
Option 1: Primary market
Option 2: Secondary market
Option 3: Money market trading
Option 4: Equity share issuance
Correct Answer: Primary market
Solution : The correct answer is (a) Primary market
When PQR Inc. considers issuing bonds to fund the acquisition of the pharmaceutical company, this activity is associated with the primary market. The primary market is where new securities, such as bonds or stocks, are issued and
Question : The Constitution of India was framed by
Option 1: Planning Commission
Option 2: Constituent Assembly
Option 3: President
Option 4: Working Committee
Correct Answer: Constituent Assembly
Solution : The correct answer is Constituent Assembly.
The Indian Constitution, the longest of any sovereign nation in the world, provides a comprehensive framework to guide and govern the country, keeping in view her social, cultural, and religious diversity. Writing a constitution for an independent
Question : Case Study: PQR Enterprises - Funding Strategies for Diversification
PQR Enterprises is a well-established conglomerate planning to diversify its business operations. The company is evaluating various sources of business finance to support its diversification plans.
Questions : Equity Shares and Preference Shares
How can PQR Enterprises raise funds through convertible preference shares?
Option 1: By issuing shares at a discount
Option 2: By converting shares into debentures
Option 3: By allowing conversion into equity shares
Option 4: By offering fixed interest payments
Correct Answer: By allowing conversion into equity shares
Solution : The correct answer is (c) By allowing conversion into equity shares
Convertible preference shares grant the shareholder the right to convert these shares into equity shares at a predetermined conversion ratio and within a specified time frame. This allows the
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