Planning
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: Telangana's contribution to the national stock of paddy is:
Option 1: one-third of the country's procurement target
Option 2: more than half of the country's paddy procurement
Option 3: less than half of the nation's rice procurement
Option 4: half of the nation's procurement target
Correct Answer: more than half of the country's paddy procurement
Solution : The correct option is the second option.
Explanation: Telangana's contribution to the national stock of paddy is stated in the passage as "The Food Corporation of India (FCI) has procured 52 lakh tonnes of paddy from Telangana alone,
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
Why would XYZ Ltd. choose to issue preference shares rather than equity shares?
Option 1: To gain voting control
Option 2: To avoid paying dividends
Option 3: To secure higher interest payments
Option 4: To raise funds without diluting voting rights
Correct Answer: To raise funds without diluting voting rights
Solution : The correct answer is (d) To raise funds without diluting voting rights
Preference shares allow companies to raise funds from investors without diluting the voting control or ownership of the existing shareholders. Unlike equity shares, preference shares usually do
Question : Case Study 76
DEF Enterprises is a startup planning to trade its shares on a stock exchange. The company's management is considering the importance of opening a demat account.
Question :
What is the primary benefit of opening a demat account for trading securities?
Option 1: Higher dividend payouts
Option 2: Reduced risk of fraud
Option 3: Access to insider information
Option 4: Lower income tax rates
Correct Answer: Reduced risk of fraud
Solution : The correct answer is (b) Reduced risk of fraud
The primary benefit of opening a demat account for trading securities is the reduced risk of fraud. A demat account holds your securities in an electronic or dematerialized form, eliminating the need for
Question : Case Study 22:
DEF Ltd. is a well-established company planning to expand its global operations through acquisitions.
To finance its acquisition plans, DEF Ltd. is evaluating short-term financing options. Which money market instrument might it use?
Option 1: Commercial paper
Option 2: Call money
Option 3: Treasury bill
Option 4: Corporate bond
Correct Answer: Commercial paper
Solution : The correct answer is (a) Commercial paper
Commercial paper is a short-term unsecured promissory note issued by corporations to raise funds quickly. It is a common choice for businesses looking for short-term financing to support various operational needs, including acquisitions. It provides a quick
Question : Case Study: LMN Ventures - Financing Innovation and Research
LMN Ventures is a research-driven technology company aiming to innovate and develop cutting-edge products. The company is exploring various sources of business finance to support its research and development endeavors.
Questions : Business Finance and Research
How does financial planning impact LMN Ventures' research and development goals?
Option 1: It determines employee training strategies
Option 2: It focuses on reducing company workforce
Option 3: It allocates funds effectively for innovation projects
Option 4: It analyzes market trends for new products
Correct Answer: It allocates funds effectively for innovation projects
Solution : The correct answer is (c) It allocates funds effectively for innovation projects
Financial planning plays a crucial role in guiding LMN Ventures' research and development (R&D) goals by effectively allocating funds for innovation projects. Proper financial planning ensures that
Question : Identify the step of planning process where other managerial functions also come into picture.
Option 1: Implementing the plan
Option 2: Follow up action
Option 3: Evaluating the alternative course of action
Option 4: None of the above
Correct Answer: Implementing the plan
Solution : Implementing the plan is the step where other managerial functions also come into the picture. The step is concerned with putting the plan into action, i.e., doing what is required. For example, if there is a plan to increase production then more labour,
Question : Case Study 2:
ABC Furniture is a leading furniture manufacturer that faces intense competition in the market. The company wants to implement control systems to ensure the efficiency of its production process and maintain a competitive edge.
Question:
Why is controlling important for ABC Furniture?
Option 1: To increase employee turnover.
Option 2: To maintain a competitive edge.
Option 3: To reduce sales revenue.
Option 4: To avoid the planning process.
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
Question : Case Study: XYZ Manufacturing Company
XYZ Manufacturing Company is a well-established firm that produces consumer electronics. They have been facing increased competition and declining sales in recent years. The management is looking for ways to revamp their production processes and regain market share.
What is the first step XYZ Manufacturing Company should take in the planning process to improve their production processes?
Option 1: Setting objectives and goals
Option 2: Identifying potential risks
Option 3: Allocating resources
Option 4: Evaluating alternatives
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
Question : The feature of systematic planning and control in scientific management emphasizes:
Option 1: Autonomy for employees
Option 2: Random decision-making
Option 3: Proactive monitoring and evaluation
Option 4: Limited feedback mechanisms
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
Question : Assertion: The management principles of planning, organizing, leading, and controlling are interrelated and interdependent.
Reason: Each function supports and complements the others to achieve organizational goals.
Option 1: Both assertion and reason are correct, and the reason explains the assertion.
Option 2: Both assertion and reason are incorrect.
Option 3: The assertion is correct, but the reason is incorrect.
Option 4: The assertion is incorrect, but the reason is correct.
Option 5: Both assertion and reason are correct, and the reason is not the correct explanation of the assertion.
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
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