Correct Answer: Primary market
 

Solution : The correct answer is (a) Primary market

If MNO Inc. is considering issuing bonds to finance its acquisition plans, it represents a primary market activity. The primary market is where new securities, such as bonds and stocks, are issued for the first time and sold directly by the issuing company to investors. In this case, MNO Inc. would issue bonds to raise funds for its acquisition plans. Investors would purchase these newly issued bonds directly from MNO Inc., and the company would receive the proceeds from the sale of these bonds. This infusion of capital from the sale of bonds would then be used to finance the acquisition of other companies, helping MNO Inc. diversify its business operations.

The secondary market, on the other hand, is where existing securities are bought and sold among investors, and the issuing company does not directly receive proceeds from these transactions. The money market primarily deals with short-term debt securities, and the capital market encompasses both the primary and secondary markets for long-term securities.

Correct Answer: Preference shares pay higher dividends
 

Solution : The correct answer is (a) Preference shares pay higher dividends

Preference shares typically have fixed dividend rates, and shareholders holding preference shares are entitled to receive these fixed dividends before any dividends are distributed to equity shareholders. This characteristic often makes preference share dividends appear higher or more stable compared to the variable dividends associated with equity shares.

Correct Answer: Achieving long-term financial goals and stability

Solution : The correct answer is (c) Achieving long-term financial goals and stability

Financial planning in a business involves creating a comprehensive strategy to manage financial resources efficiently, allocate funds effectively, and achieve both short-term and long-term financial objectives. It's about ensuring the company's stability and growth over time, managing risks, optimizing resource utilization, and making informed decisions to achieve sustainable success in the long run. The goal is to achieve financial stability and meet the company's long-term goals and objectives, rather than focusing solely on short-term operational needs or maximizing profits at any cost.

Correct Answer: Incorporating flexibility in the plans
  

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

Planning inherently involves uncertainties, and rigid plans may not be adaptable to changes in the dynamic business environment. By incorporating flexibility in the plans, PQR Software Solutions can better respond to unexpected events and make adjustments as needed.

In summary, incorporating flexibility in the plans allows PQR Software Solutions to address the limitations of planning by creating adaptive strategies that can respond to changes and uncertainties in the business environment.

Correct Answer: Measurable and specific goals

Solution : The correct answer is (c) Measurable and specific goals

Effective planning involves setting clear, measurable, and specific goals. This clarity in objectives allows for better decision-making, resource allocation, and performance evaluation. Measurable and specific goals provide a basis for tracking progress and ensuring that everyone within the educational institute understands what needs to be achieved.

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 not carry voting rights, enabling the company to secure funding while keeping voting control concentrated among the current ownership or management. Preference shares also provide the company with the flexibility to offer a fixed dividend to investors, ensuring a predictable cash outflow to shareholders, which can be appealing to certain investors and can aid in financial planning.

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.

Correct Answer: Matching buy and sell orders

Solution : The correct answer is (c) Matching buy and sell orders

A broker in the stock market facilitates the buying and selling of securities by acting as an intermediary between buyers and sellers. Their primary role is to match buy and sell orders from different investors. When an investor wants to buy or sell shares, they place an order through their broker, and the broker matches the order with another investor looking to do the opposite (buy or sell). This matching process helps in executing trades and ensuring liquidity in the market. The broker earns a commission or fee for facilitating these transactions.

Correct Answer:

Both assertion and reason are correct, and the reason is a correct explanation.

Solution : The correct answer is (a) Both assertion and reason are correct, and the reason is a correct explanation.

The assertion is correct as the planning process typically begins with the setting of objectives. Objectives provide a direction for planning by outlining what the organization aims to achieve. The reason is a correct explanation because objectives are indeed set as an integral part of the planning process, helping guide the development of strategies and actions to achieve those objectives.

Correct Answer: External sources

Solution : The correct answer is (c) External sources

When XYZ Ltd. plans to hire experienced professionals from other companies to bring in new perspectives, it is utilizing external sources of recruitment. External recruitment involves attracting and hiring individuals from outside the organization. This strategy allows the company to bring in fresh talent with diverse experiences and perspectives, contributing to innovation and growth within the organization.