Planning
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
If XYZ Ltd. issues cumulative preference shares, it means that:
Option 1: The shares cannot be redeemed
Option 2: Dividends on these shares must be paid before any arrears
Option 3: These shares cannot be traded in the stock market
Option 4: The company is required to pay dividends at a fixed rate
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
Question : The money supply is governed by the:
Option 1: Planning Commission
Option 2: Finance Commission
Option 3: Reserve Bank of India
Option 4: Commercial banks
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,
Question : Assertion: coordination is considered as only a one time function of the management .
Reason: coordination starts with the initial stage called planning and continues till the stage of controlling.
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: 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
Question : Which of the following statements about planning is not true?
Option 1: Planning is a pre-requisite for controlling in the management process.
Option 2: Planning does not lead to rigidity
Option 3: Planning enables a manager to look ahead and anticipate changes
Option 4: .Planning facilitates coordination among departments and individuals in the organization.
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
Question : Questions : Business Finance and Its Meaning
Statement 1: Financial planning plays a pivotal role in effective resource allocation.
Statement 2: Financial planning primarily focuses on production 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. Financial planning indeed plays a pivotal role in effective resource allocation within a business. It involves allocating financial resources
Statement 1: Financial planning is crucial for effective utilization of financial resources.
Statement 2: Financial planning only considers short-term objectives.
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
Statement 1: Financial planning contributes to maximizing shareholder wealth and company value.
Statement 2: Financial planning does not consider the interests of stakeholders.
Statement 1 is true. Financial planning is designed to contribute to maximizing shareholder wealth and company value. Through effective financial planning, a company
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
Correct Answer: International Depository Receipt
Solution : The correct answer is (b) International Depository Receipt
An International Depository Receipt (IDR) is a financial instrument denominated in a foreign currency and is offered by a non-resident company outside the country where it is listed. IDRs represent shares of the foreign company
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
Correct Answer: Expanding into new business areas
Solution : The correct answer is (d) Expanding into new business areas
Diversification involves entering into new markets, launching new products or services, or expanding business operations into different areas or industries. The objective is to spread business risk by participating in various
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
Correct Answer: Invigorating
Solution : The correct choice is the second option.
Debilitating means to make someone very weak, whereas, "invigorating" means to make one feel strong and full of energy. Thus, making it the correct antonym for the given word.
The meanings of the other options are as follows:
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