Correct Answer: Selecting the best possible course of action 

Solution : The best alternative is selected but as such there is no mathematical formula to select the best alternative. Selecting the best alternative is most critical step in the planning process, because if wrong plan is selected then whole process will go in wrong direction.
Hence, option 3 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: Smothering

Solution : The correct choice is the third option.

"Asphyxiating" means to cause someone or something to suffocate or be deprived of air, resulting in a feeling of being unable to breathe. In the passage, it is used metaphorically to describe the feeling of being held back or suffocated by the existing hierarchy or constraints.

The meanings of the other options are as follows:

• "Emancipating" and "liberating" both have the opposite meaning of "asphyxiating". They imply freedom and release from constraints, which is the opposite of what is described in the passage.
• "Unfettering" also implies the removal of constraints, so it is not a suitable synonym for "asphyxiating" in this context.

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.

Correct Answer: Planning provide direction

Solution : The term "planning" refers to a predetermined course of action. It gives the instructions. It provides direction to employees' efforts. Planning clarifies what employees must do, how they must do it, and so on. This also leads to unity of direction; without planning, employees would be working in different directions, and the organisation would be unable to achieve its goals.
Hence, option 1 is the correct answer.

Correct Answer: It enables Indian companies to raise funds abroad

Solution : The correct answer is (c) It enables Indian companies to raise funds abroad

IDR stands for Indian Depository Receipts. An IDR is a financial instrument denominated in Indian Rupees and issued by a domestic depository in India. It allows Indian companies to raise funds from international investors in the form of depository receipts. This mechanism enables Indian companies to tap into international capital markets without directly listing their shares on foreign exchanges.

Correct Answer: Incorporating flexibility in the plans
    

Solution : The correct answer is (a). Incorporating flexibility in the plans

Planning inherently involves uncertainty, and incorporating flexibility allows an organization to adapt to changes and unforeseen circumstances. This adaptability ensures that plans remain relevant and effective in dynamic environments.

Therefore, Incorporating flexibility in the plans is the most suitable choice for overcoming the limitations of planning.

Correct Answer: Employee engagement

Solution : The correct answer is (d) Employee engagement

The decentralized approach to training at XYZ Ltd., where employees can choose from a range of workshops based on their preferences, best aligns with the concept of employee engagement. Employee engagement refers to the level of involvement, enthusiasm, and commitment that employees have towards their work and the organization. Allowing employees to choose training based on their preferences is a strategy that fosters engagement by recognizing individual needs and interests, making the training process more personalized and engaging for employees.

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 is true. Businesses face uncertainties and risks regularly, such as market fluctuations, economic changes, competition, and other variables. Business finance is needed to mitigate and manage these risks effectively.

The reason is false. Financial planning does not eliminate all forms of business risk and uncertainties. While financial planning helps in managing and mitigating risks by providing a structured approach to financial management, it cannot completely eliminate the inherent risks and uncertainties associated with business activities. Risk management is a part of financial planning, but it doesn't eradicate risks altogether.

Correct Answer: Equity share
 

Solution : The correct answer is (b) Equity share

Equity shares are a type of security that represents ownership in a company. When a company sells equity shares, it is raising capital from investors. Equity shares are a good option for companies that are looking to raise capital for new ventures, as they do not have to be repaid. Therefore, the best financial instrument for XYZ Corporation to use to raise capital for its new venture in the renewable energy sector is equity shares. Equity shares will allow the company to raise capital without having to repay it, and it will also allow investors to share in the ownership and profits of the new venture.