Question : Questions : Business Finance and Its Meaning
Statement 1: Business finance is not necessary for achieving growth and profitability.
Statement 2: Financial decisions do not impact the company's overall 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 growth and profitability. It involves managing funds, investments, and financial operations to support business activities, expansion, innovation, and other initiatives crucial for growth and profitability.
Statement 2 is true. Financial decisions do indeed impact the company's overall performance. Financial decisions, such as investment choices, financing methods, dividend policies, and risk management, significantly influence a company's financial health, growth, and overall success. Ignoring or making poor financial decisions can lead to adverse effects on the company's performance.
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