Correct Answer: To maintain a competitive edge.

Solution : The correct answer is (b) To maintain a competitive edge.

Controlling is important for ABC Furniture, as it helps the company monitor and manage its operations to ensure that they are running efficiently and effectively. In a highly competitive market, maintaining a competitive edge is crucial for the company's success. By implementing control systems, ABC Furniture can continuously assess its production process, quality standards, costs, and other aspects of its operations. This allows the company to identify areas for improvement, make necessary adjustments, and ensure that it remains efficient and capable of competing effectively against its rivals.

Correct Answer: Identifying potential risks
 

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

Identifying potential risks is a crucial initial step because it allows the company to understand the challenges and uncertainties associated with revamping production processes. By assessing potential risks, XYZ Manufacturing Company can develop strategies to mitigate these risks and ensure a more successful planning and implementation process.

Correct Answer: Proactive monitoring and evaluation

Solution : The correct answer is (c) Proactive monitoring and evaluation.

Systematic planning and control in scientific management involves carefully designing and implementing plans, procedures, and control mechanisms to ensure that work is carried out efficiently and effectively. It emphasizes proactive monitoring and evaluation of work processes to identify areas for improvement, track progress, and make necessary adjustments. This feature involves setting performance standards, measuring performance against those standards, and continuously monitoring and evaluating performance to ensure that goals and targets are being met.

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 because the management principles of planning, organizing, leading, and controlling are indeed interrelated and interdependent. They work together as part of the management process to achieve organizational goals. For example, planning sets the direction, organizing allocates resources, leading guides and motivates employees, and controlling ensures that activities align with the plan.

The reason is also correct because it explains why these functions are interrelated and interdependent. Each function supports and complements the others to ensure that the organization operates efficiently and effectively. Therefore, the reason provides a logical explanation for the assertion.

Correct Answer: Dividends on these shares must be paid before any arrears
  

Solution : The correct answer is (b) Dividends on these shares must be paid before any arrears

Cumulative preference shares entitle the shareholders to receive their fixed dividends before any dividends are paid to equity shareholders. If the company is unable to pay dividends in a particular year, the unpaid dividends accumulate and must be paid in future years before any dividends are distributed to equity shareholders. This ensures that the preference shareholders receive their dividends, including any unpaid amounts from previous years, before equity shareholders receive any dividends.

Correct Answer: Reserve Bank of India

Solution : The correct option is the Reserve Bank of India.

The RBI is the central banking organisation in charge of governing and managing the nation's credit and money supply. To preserve price stability and ensure sufficient credit flow to sustain economic growth, it develops and implements monetary policy. Open market operations, reserve requirements, and the policy repo rate are just a few of the techniques and instruments the RBI utilises to control the amount of money in the economy. These instruments are employed to control interest rates, inflation, and overall economic stability.

Correct Answer: The assertion is incorrect, but the reason is correct.

Solution : The correct answer is (d) The assertion is incorrect, but the reason is correct.

The assertion is incorrect. Coordination is an ongoing and continuous function of management that does not occur only once. It is vital throughout the management process and involves ensuring that activities and efforts align to achieve organizational goals.

The reason is correct. Coordination is integral to the management process and spans across all stages, from planning to controlling.

Correct Answer: Planning does not lead to rigidity

Solution : Having a plan places managerial operations under a strict framework. Plans are followed to execute programmes. Instead of reaching the goals, managers start to focus more on following the guidelines outlined in the plan.

Hence, option B is the correct answer.

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 indeed plays a pivotal role in effective resource allocation within a business. It involves allocating financial resources optimally to various activities and functions to achieve the company's objectives efficiently.

Statement 2 is false. Financial planning is not limited to focusing on production activities. It encompasses a broader scope, including planning for all financial aspects of the business, such as investment, financing, budgeting, risk management, and overall financial strategy. Production activities are just one component of the overall financial planning process.

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 creating a strategy to manage, allocate, and utilize financial resources effectively to achieve short-term and long-term financial goals. It encompasses budgeting, investing, saving, insurance planning, tax planning, and more to ensure efficient financial management.

Statement 2 is false. Financial planning considers both short-term and long-term objectives. It involves setting financial goals for the short, medium, and long term, and creating a comprehensive plan to achieve these goals through appropriate financial strategies and actions.