Question : Assertion-Reason Questions: Chapter - Sources of Business Finance
Questions : Business Finance and Its Meaning
Assertion: Business finance plays a crucial role in achieving business objectives.
Reason: Financial decisions have no impact on a company's growth and expansion.
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: Assertion is true, but the reason is false.
Solution : The correct answer is (c) Assertion is true, but the reason is false.
The assertion that "Business finance plays a crucial role in achieving business objectives" is true. Business finance is essential for a company to achieve its objectives, including growth, expansion, profitability, and sustainability. Proper financial management, funding, budgeting, and investment decisions are all critical aspects of achieving business objectives.
The reason that "Financial decisions have no impact on a company's growth and expansion" is false. Financial decisions have a significant impact on a company's growth and expansion. Decisions related to funding, investments, mergers and acquisitions, capital allocation, and financial planning directly influence a company's ability to grow and expand its operations, enter new markets, develop new products or services, and invest in research and development. Financial decisions can either facilitate or hinder a company's growth trajectory.
