Question : Questions: Business Finance and Its Meaning
Statement 1: Business finance involves managing and raising funds for various business activities.
Statement 2: Financial decisions do not impact a company's growth and profitability.
Option 1: Statement 1 is true, and statement 2 is false.
Option 2: Statement 1 is false, and statement 2 is true.
Option 3: Both statements 1 and 2 are true.
Option 4: Both statements 1 and 2 are false.
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. Business finance indeed involves managing and raising funds for various business activities. Managing finances is crucial for sustaining operations, investing in growth, and achieving the company's objectives.
Statement 2 is false. Financial decisions, including investments, financing, and dividend policies, significantly impact a company's growth and profitability. The way a company manages its finances directly influences its ability to expand, innovate, and generate profits. Poor financial decisions can hinder growth and profitability, while sound financial decisions can enhance them.
