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 and cost-effective way to access funds, making it suitable for financing acquisition plans in the short term.

Correct Answer: Planning leads to rigidity.
 

Solution : Planning helps to achieve specific goals of the organisation. These plans can't be changed as it involves rigidities. To cope up with the circumstances managers need to be given some flexibility.
Hence Option A is correct.

Correct Answer: Planning reduces creativity

Solution : With the planning, the organization's managers begin to work rigidly and become the plan's only blind follower. The manager takes no initiative to make changes to the plan in response to changes in the business environment. In the above case, Rahul's supervisor instead of appreciating him, ordered him to complete the work as per the method and technique decided earlier as nothing could be change at this stage. It will shows planning reduce creativity.
Hence, option 1 is the correct answer.

Correct Answer: To allocate funds for new ventures effectively

Solution : The correct answer is (d) To allocate funds for new ventures effectively

Financial planning is essential for diversification as it involves assessing the financial requirements of entering new business areas, determining the amount of funding needed, and devising a strategic plan to allocate funds efficiently. Effective financial planning helps in managing the resources, optimizing budgets, securing necessary financing, and ensuring that the new ventures are adequately funded for successful implementation. This ensures that the company's diversification efforts are financially sustainable and aligned with the broader strategic goals of the organization. Options a, b, and c are not directly related to the significance of financial planning for diversification.

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 resources are allocated to R&D initiatives in a strategic and efficient manner, enabling the organization to pursue its research and innovation goals effectively. This involves budgeting, forecasting, and determining the financial resources needed to support various R&D projects and activities.

Correct Answer: Staffing, 

Solution : Recruitment, selection, training, and development of employees are the processes of staffing. Staffing is the managerial function of hiring and developing the required employees to fill in various positions created by the organising process. This function is concerned with finding the right person for the right position at the right time.

Hence, Option B is correct.

Correct Answer: Planning, organizing, staffing, directing and controlling

Solution : The correct answer is (c) Planning, organizing, staffing, directing, and controlling.

The functions of management are commonly recognized as planning, organizing, staffing, directing, and controlling. These functions represent the key activities that managers perform to effectively run an organization. 

- Planning involves setting goals, developing strategies, and determining the actions required to achieve those goals.

- Organizing involves arranging resources, tasks, and people to ensure the smooth execution of plans.

- Staffing involves acquiring, developing, and managing the human resources necessary for the organization's success.

- Directing involves guiding and leading employees, providing instructions, and motivating them to achieve the organization's objectives.

- Controlling involves monitoring performance, comparing it to the planned goals, and taking corrective actions as needed.

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 plays a vital role in allocating funds optimally across various activities and departments within a business. It involves budgeting, investment decisions, risk management, and financial resource allocation to achieve organizational goals efficiently.

Statement 2 is false. Financial planning is not solely focused on marketing and sales strategies. While financial planning may encompass aspects related to marketing and sales budgeting, its scope is much broader, covering all financial aspects of a business, including budgeting for operations, investments, expansion, risk management, and more.

Correct Answer: Planning, Organising, Staffing, Controlling 

Solution : Planning, Organising, Staffing, Controlling
Management functions in this process.

Hence, Option C is correct.

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.