Question : Case Study: PQR Enterprises - Funding Strategies for Diversification
PQR Enterprises is a well-established conglomerate planning to diversify its business operations. The company is evaluating various sources of business finance to support its diversification plans.
Questions : Business Finance and Diversification
What is the primary objective of financial planning for PQR Enterprises?
Option 1: Maximizing market share
Option 2: Achieving diversification
Option 3: Achieving long-term financial goals
Option 4: Meeting short-term operational needs
Correct Answer: Achieving long-term financial goals
Solution : The correct answer is (c) Achieving long-term financial goals
Financial planning involves formulating strategies to manage finances effectively to attain long-term financial objectives. It encompasses various aspects such as budgeting, forecasting, investment planning, risk management, and aligning financial activities with the company's strategic goals. By focusing on long-term financial goals, PQR Enterprises aims to ensure sustainable growth, profitability, and financial stability over an extended period.
Why does PQR Enterprises need external financing for its diversification plans?
Option 1: To eliminate competition
Option 2: To decrease market share
Option 3: To reduce operational costs
Option 4: To fund new business ventures
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