Question : Questions : Business Finance and Its Meaning
Statement 1: Business finance is not essential for achieving business objectives.
Statement 2: Financial decisions do not impact the company's performance.
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 false, and statement 2 is true.
Solution : The correct answer is (b) Statement 1 is false, and statement 2 is true.
Statement 1 is false. Business finance is essential for achieving business objectives. It involves acquiring funds and managing them to support various business activities, growth, and strategic goals. Finance is a critical tool for any business to thrive and achieve its objectives.
Statement 2 is true. Financial decisions do indeed impact the company's performance. The way funds are allocated, invested, and managed affects the financial health, growth, and sustainability of the company. Poor financial decisions can lead to financial instability and negatively impact the company's overall performance.
Statement 1: Business finance is not necessary for achieving growth and profitability.
Statement 2: Financial decisions do not impact the company's overall performance.
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