Question : Assertion-Reason Questions: Chapter - Sources of Business Finance
Questions : Business Finance and Its Meaning
Assertion: Business finance is not required for decision-making and achieving company objectives.
Reason: Financial decisions have no impact on business operations and profitability.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Both assertion and reason are false.
Correct Answer: Both assertion and reason are false.
Solution : The correct answer is (d) Both assertion and reason are false.
The assertion is false. Business finance is crucial for decision-making and achieving company objectives. Financial decisions regarding investments, capital structure, cash flow management, and financial planning directly impact a company's ability to reach its goals and objectives effectively.
The reason is false. Financial decisions have a substantial impact on business operations and profitability. Proper financial decisions can optimize operations, allocate resources efficiently, and contribute to the overall profitability and success of a business. Financial decisions are integral to the functioning and success of a company.
Assertion: Need for business finance arises due to uncertainties and risks.
Reason: Business operations are always predictable and stable.
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