Question : Case Study: XYZ Ltd. - Raising Finance for Expansion
XYZ Ltd. is a growing company that manufactures electronic gadgets. The company has been successful in the market and is planning to expand its operations. To finance this expansion, XYZ Ltd. is considering various sources of business finance.
Questions : Meaning and Need for Business Finance
What is the meaning of business finance?
Option 1: Managing human resources in a business
Option 2: Acquiring funds for business operations and expansion
Option 3: Developing marketing strategies for business growth
Option 4: Implementing technology solutions in a business
Correct Answer: Acquiring funds for business operations and expansion
Solution : The correct answer is (b) Acquiring funds for business operations and expansion
Business finance involves acquiring the necessary funds and managing financial resources to support a company's day-to-day operations, projects, and future growth. It encompasses activities related to budgeting, financial forecasting, investment decisions, obtaining loans or equity, managing working capital, and overall financial planning to ensure the efficient use of financial resources for achieving the company's objectives.
Why does XYZ Ltd. need business finance for its expansion?
Option 1: To increase employee satisfaction
Option 2: To reduce production costs
Option 3: To explore new markets
Option 4: To fund its expansion plans and meet capital requirements
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