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. Financial planning, in the context of a company, aims to optimize the allocation of financial resources and make decisions that maximize shareholder wealth and enhance the overall value of the company. It involves strategies to increase profitability, manage risks, and create long-term value for shareholders.

Statement 2 is false. Financial planning does not ignore the interests of stakeholders. In fact, financial planning often takes into account the interests of various stakeholders, including shareholders, employees, customers, and the community. Effective financial planning considers a broader perspective, aligning the interests of stakeholders with the overall goals and sustainability of the business. Balancing the interests of stakeholders is an important aspect of responsible financial planning.

Correct Answer: Identifying potential risks
 

Solution : The correct answer is (b). Identifying potential risks

Identifying potential risks is a crucial step in the planning process as it allows the company to anticipate and mitigate potential challenges that may arise during the implementation of the chosen course of action. By identifying risks, PQR Software Solutions can develop strategies to address them effectively, ensuring a smoother and more successful implementation of the new customer support system.

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. Financial planning involves the process of determining the most efficient and effective way to use available financial resources to achieve the goals and objectives of an individual or organization. It involves budgeting, investment planning, risk management, and other strategies to optimize the use of funds.

Statement 2 is false. Financial planning is not only concerned with short-term goals. It encompasses both short-term and long-term financial goals, considering the entire financial landscape and various timeframes. It involves planning for immediate needs as well as future financial stability and growth.

Correct Answer: The company has the option to buy back the debentures
    

Solution : The correct answer is (b) The company has the option to buy back the debentures

When debentures are labeled as "callable," it means that the issuing company has the right, but not the obligation, to buy back or redeem the debentures before their maturity date. Typically, there are specific terms and conditions outlined in the debenture agreement regarding when and how the company can exercise this option to call or buy back the debentures. This provides flexibility to the company to manage its debt and capital structure.

Correct Answer: Assertion is true, but the reason is false.

Solution : The correct answer is (c) Assertion is true, but the reason is false.

The assertion is true. Financial planning involves developing strategies and plans to efficiently manage the company's financial resources, including budgeting, forecasting, investment planning, and other financial aspects, to achieve its goals and objectives.

The reason is false. Financial planning considers both short-term and long-term goals of a business. Effective financial planning addresses the company's present financial needs and long-term financial sustainability, ensuring that resources are managed effectively to support the organization's overall strategic goals and objectives.

Correct Answer: Selection
  

Solution : The correct answer is (b) Selection

When the HR department at XYZ Ltd. uses case studies and presentations to evaluate candidates' problem-solving skills, it reflects the selection aspect of staffing. The selection process involves assessing and choosing the most suitable candidates for specific positions within the organization. Case studies and presentations are common methods used during the selection phase to evaluate a candidate's ability to analyze situations, think critically, and present solutions—qualities crucial for many roles, especially those requiring problem-solving skills.

Correct Answer: Primary market
 

Solution : The correct answer is (a) Primary market

When JKL Ltd. considers issuing bonds to finance the acquisition of the AI startup, the type of market activity associated with this action is Primary market. In the primary market, new securities such as bonds or stocks are issued and sold for the first time, directly by the issuing company or entity to investors. JKL Ltd. would be initiating this process by offering bonds to raise capital specifically for funding the acquisition, making it a primary market activity.

Correct Answer: Setting organizational goals and strategies

Solution : The correct answer is (c) Setting organizational goals and strategies

Planning in management involves defining the organization's goals and objectives, and determining the strategies and actions necessary to achieve them. In the context of a retail business like ABC Retailers, this would include setting goals related to providing a wide range of trendy clothing options and achieving specific financial and operational objectives, and then creating strategies to realize those goals.

Correct Answer: Securities and Exchange Board of India
 

Solution : The correct answer is (a) Securities and Exchange Board of India

The full form of SEBI is Securities and Exchange Board of India. SEBI is the regulatory body in India that oversees and regulates the securities market, protecting the interests of investors and promoting the development and regulation of the securities market.

Correct Answer: Planning may not work in a dynamic environment.
 

Solution : The business environment is dynamic in nature. The organisation has to constantly adapt itself to changes. Rigidities involves obstacles to effective planning. It is difficult to make accurate forecast.
Hence Option B is correct.