Correct Answer: Planning does not guarantee success

Solution : Managers have a tendency to rely on previously tried and tested successful plans. It is not always true that just because a plan has worked before it will work again as there are so many unknown factor which may lead to failure of plan in future. Managers have a tendency to rely on previously tried and tested successful plans. It is not always true that just because a plan has worked before it will work again as there are so many unknown factor which may lead to failure of plan in future.
Hence, option 4 is the correct answer.

Correct Answer: Ownership in the company
   

Solution : The correct answer is (b) Ownership in the company

Equity shares represent ownership or equity ownership in a company. Shareholders who hold equity shares have ownership rights in the company, which typically includes voting rights, the right to share in the company's profits (through dividends), and the right to participate in decision-making processes related to the company's operations and policies. Unlike debt securities (e.g., debentures), equity shares do not guarantee fixed interest payments or redemption; instead, the dividend payments to equity shareholders are variable and based on the company's profitability and the decisions of the company's board of directors.

Correct Answer: Achieving long-term innovation goals

Solution : The correct answer is (c) Achieving long-term innovation goals

Financial planning in the context of innovation and research involves strategic allocation of financial resources to support long-term innovation goals. This includes funding research projects, developing new products, exploring new technologies, and investing in activities that will position the company for future growth and competitiveness. The focus is on achieving sustained innovation and long-term success rather than short-term profit maximization, minimizing production costs, or meeting immediate operational expenses, although these factors are also considered within the broader financial planning strategy.

Correct Answer: It hindered long-term economic planning.

Solution : A major criticism of the suspension of Five-year Plans in India was that it hindered long-term economic planning, disrupting the systematic approach to development that the plans aimed to provide.

Correct Answer: No dilution of ownership
   

Solution : The correct answer is (a) No dilution of ownership

Retained earnings refer to the portion of a company's profits that are retained and reinvested in the business rather than distributed to shareholders as dividends. By utilizing retained earnings, a company can avoid dilution of ownership because it does not have to issue additional shares to raise funds. This allows the existing shareholders to maintain their ownership stakes in the company without the need for external financing or bringing in new shareholders.

Correct Answer: Setting objectives and goals

Solution : The correct answer is (c). Setting objectives and goals

Setting clear objectives and goals is a crucial step in the planning process. Once PQR Software Solutions has assessed different courses of action, it needs to define what it aims to achieve with the new customer support system. Establishing objectives and goals provides direction and purpose to the planning process, guiding the allocation of resources, identification of potential risks, and the overall implementation strategy. Setting objectives and goals helps ensure that the chosen course of action aligns with the company's strategic vision and desired outcomes.

Correct Answer: Ministry of Finance

Solution : The correct answer is the Ministry of Finance

A government uses fiscal policy to monitor a country's economy by adjusting its tax and expenditure rates. The Union Ministry of Finance is responsible for creating it. Fiscal policy governs the decisions made by the government on taxes and spending. Money supply and interest rates are two topics covered by the monetary policy. The Ministry of Finance in India developed the country's proposed annual budget.

Correct Answer: Both enable companies to raise funds in international markets

Solution : The correct answer is (d) Both enable companies to raise funds in international markets

GDRs and ADRs are both financial instruments that enable companies to raise funds in international markets by issuing depositary receipts. GDRs are issued and traded outside the United States, while ADRs are specifically issued and traded in the United States. They allow companies to tap into a larger pool of investors and access capital from international markets without directly listing their shares on foreign stock exchanges. These instruments represent claims to shares in the issuing company and facilitate investment from investors in different regions around the world.

Correct Answer: Debentures

Solution : The correct answer is (c) Debentures

Debentures are long-term debt instruments issued by companies to raise funds from the public or institutional investors. Holders of debentures are creditors of the company and are promised a fixed rate of interest and repayment of the principal amount at maturity. Unlike equity shares, debenture holders do not have ownership rights in the company.

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. The need for business finance often arises due to various risks and uncertainties associated with business activities. Risks such as market fluctuations, economic changes, competition, regulatory changes, and more can impact a business's financial stability and necessitate financial planning and management to mitigate these risks.

Statement 2 is false. Financial planning aims to manage and mitigate risks but does not eliminate all uncertainties in business operations. While it helps in forecasting, budgeting, and strategizing to minimize risks, it cannot completely eliminate uncertainties, as the business environment is dynamic and subject to various unpredictable factors.