Question : Questions : Business Finance and Its Meaning

Statement 1: Financial planning contributes to maximizing shareholder wealth and company value.

Statement 2: Financial planning does not consider the interests of stakeholders.

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.

Question : Case Study: XYZ Ltd. - Raising Finance for Expansion

XYZ Ltd. is a growing company that manufactures electronic gadgets. The company has been successful in the market and is planning to expand its operations. To finance this expansion, XYZ Ltd. is considering various sources of business finance.

Questions : Debentures and Financial Instruments

XYZ Ltd. is considering issuing IDR. What does "IDR" stand for?

Option 1: Indian Debt Reserve
   

Option 2: International Depository Receipt
 

Option 3: Indian Dividend Ratio

Option 4: International Debt Redemption

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 : Business Finance and Diversification

In the context of business finance, what does "diversification" refer to?

Option 1: Increasing shareholder dividends
    

Option 2: Expanding to international markets
   

Option 3: Reducing company workforce

Option 4: Expanding into new business areas

Question : Comprehension:

Read the given passage and answer the questions that follow.

Such examples of commercial success, innovation, drive, vision, determination, adaptability, and adventure are anchored in the basic Indian openness to, and talent for, acquiring material wealth. For every success story, there are, of course, dozens of failures. Traditional Indian firms have their strengths, but also their weaknesses, and of these perhaps the most debilitating are a lack of teamwork and a weakness for a quick profit. These reflect ingrained ways of thinking and planning, as does the distrust of anyone outside the family, which inhibits the adoption of modern practices of management. But such weaknesses are more than compensated for by the desire to succeed, which is probably more intense in India, given the omnipresent fear of poverty, the cut-throat competition for each opportunity, and the asphyxiating hold of hierarchy.

Question:

Select the most appropriate ANTONYM of the given word with reference to its usage in the passage.

Debilitating

Option 1: Enfeebling

Option 2: Crippling

Option 3: Invigorating

Option 4: Undermining

Question : Case Study: ABC Retail Chain

ABC Retail Chain is a popular brand with multiple stores across the country. They are planning to expand their product range by adding organic and eco-friendly products.

Question:

The importance of planning for ABC Retail Chain in expanding their product range includes:

Option 1: Enhancing the decision-making process
    

Option 2: Limiting financial resources
 

Option 3: Ignoring external factors

Option 4: Restricting employee autonomy

Question : Read the passage given below and then answer the questions given below the passage. Some words may be highlighted for your attention. Read carefully.

Billionaire Mukesh Ambani's telecom venture Reliance Jio Infocom is planning to foray into automobile telematics with the launch of a device that will control vehicle's movement and alert owner about fuel and battery through a mobile app. "Reliance Jio is ready with a car connected device that will have multiple features like immobilize car at the time of theft, alert owner about car movement, locate car and also provide wi-fi within car, The owner needs to use Jio sim in the device to avail benefits." an industry source said. The company is in advance talks with automobile companies to launch it very soon. "There are lots of factors that determine price, but price of the car connected device is estimated to be either equal to or less than its Jio's wifi device which costs around Rs 2,000," the source said. With help of Jio's car management device, the owner will get information about the way his driver is driving the car, the movement of vehicle can be restricted within a geography, switch on AC of car from any remote location, get alert of car break etc. "Jio is working on the modalities on its sales model for the existing cars as well" the source said. The device and application has been internally developed by Jio but the hardware device will be initially imported from China. "Jio has asked its device vendor to start making it in India after initial rollout," the source said. Besides this, the company is also scaling up its fibre to the home project for which it is running pilot in some cities including Delhi and Mumbai. "With Fibre to the home, Jio will focus on automatic entire home from entertainment to home surveillance to utility management, the source said. Jio has touched a customer base 7.24 crore and claims to be adding 1 lakh mobile subscribers per day. The company has set target to cross 10 crore customers by March 31, 2017.

Question:
Which of the following is ensured mostly through the use of JIO sim?

Option 1: Security
 

Option 2: Better models
 

Option 3: More entertainment
 

Option 4: More comfort

Question : Comprehension:
Read the given passage and answer the questions that follow.
With an impressive growth in yields, Telangana now claims to be transforming into the rice bowl of India. The Food Corporation of India (FCl) has procured 52 lakh tonnes of paddy from Telangana alone, which is more than half of the national target of 91 lakh tonnes. The state's harvests have nearly doubled in a year. Paddy production is up 93%, maize 95%, and cotton 74%, according to the Telangana Planning Department.

The state is also making its mark as a producer of paddy seed. "About 85% of our village's paddy is of a fine variety that farmers in MP, Haryana, Bengal, and Bihar use as seed," said a farmer in Anksapur Village in Nizamabad district. The seed crop sells at a premium over the state's minimum support price for paddy.

Question:
According to the passage, in one year, the harvests in the state of Telangana have:

Option 1: remained the same

Option 2: almost doubled

Option 3: decreased sharply

Option 4: increased many times

Question : Case Study 22:

DEF Ltd. is a well-established company planning to expand its global operations through acquisitions.

Question :

DEF Ltd. aims to expand its global operations through acquisitions. Which market activity is related to this objective?

Option 1: Primary market
 

Option 2: Currency swap
 

Option 3: Mergers and acquisitions

Option 4: Money market trading

Question : Assertion-Reason Questions: Chapter - Sources of Business Finance

Questions : Business Finance and Its Meaning

Assertion: Need for business finance arises due to various uncertainties and risks associated with business activities.

Reason: Financial planning eliminates all forms of business risk and uncertainties.

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.

Question : Case Study: XYZ Ltd. - Raising Finance for Expansion

XYZ Ltd. is a growing company that manufactures electronic gadgets. The company has been successful in the market and is planning to expand its operations. To finance this expansion, XYZ Ltd. is considering various sources of business finance.

Questions : Equity Shares and Preference Shares

Preference shareholders of XYZ Ltd. are entitled to:

Option 1: Convert their shares into debentures
   

Option 2: Voting rights in company decisions
    

Option 3: A fixed dividend before equity shareholders

Option 4: A share of the company's profits after equity shareholders