Question : Which of the following statements about planning is not true?
Option 1: Planning is a pre-requisite for controlling in the management process.
Option 2: Planning does not lead to rigidity
Option 3: Planning enables a manager to look ahead and anticipate changes
Option 4: .Planning facilitates coordination among departments and individuals in the organization.
Correct Answer: Planning does not lead to rigidity
Solution : Having a plan places managerial operations under a strict framework. Plans are followed to execute programmes. Instead of reaching the goals, managers start to focus more on following the guidelines outlined in the plan.
Hence, option B is the correct answer.
Answer laterQuestion : Questions : Business Finance and Its Meaning
Statement 1: Financial planning plays a pivotal role in effective resource allocation.
Statement 2: Financial planning primarily focuses on production activities.
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. Financial planning indeed plays a pivotal role in effective resource allocation within a business. It involves allocating financial resources optimally to various activities and functions to achieve the company's objectives efficiently.
Statement 2 is false. Financial planning is not limited to focusing on production activities. It encompasses a broader scope, including planning for all financial aspects of the business, such as investment, financing, budgeting, risk management, and overall financial strategy. Production activities are just one component of the overall financial planning process.
Question : Questions : Business Finance and Its Meaning
Statement 1: Financial planning is crucial for effective utilization of financial resources.
Statement 2: Financial planning only considers short-term objectives.
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. Financial planning involves creating a strategy to manage, allocate, and utilize financial resources effectively to achieve short-term and long-term financial goals. It encompasses budgeting, investing, saving, insurance planning, tax planning, and more to ensure efficient financial management.
Statement 2 is false. Financial planning considers both short-term and long-term objectives. It involves setting financial goals for the short, medium, and long term, and creating a comprehensive plan to achieve these goals through appropriate financial strategies and actions.
Question : Questions : Business Finance and Its Meaning
Statement 1: Financial planning contributes to maximizing shareholder wealth and company value.
Statement 2: Financial planning does not consider the interests of stakeholders.
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. Financial planning is designed to contribute to maximizing shareholder wealth and company value. Through effective financial planning, a company can optimize its operations, investments, financing, and other aspects to enhance profitability and create value for shareholders.
Statement 2 is false. Financial planning does consider the interests of stakeholders, including shareholders. The objective of financial planning is to align financial decisions with the interests of various stakeholders, such as shareholders, investors, creditors, and the broader community. It's about balancing the interests of all parties involved in the business to achieve the best outcomes.
Question : Case Study: XYZ Ltd. - Raising Finance for Expansion
XYZ Ltd. is a growing company that manufactures electronic gadgets. The company has been successful in the market and is planning to expand its operations. To finance this expansion, XYZ Ltd. is considering various sources of business finance.
Questions : Debentures and Financial Instruments
XYZ Ltd. is considering issuing IDR. What does "IDR" stand for?
Option 1: Indian Debt Reserve
Option 2: International Depository Receipt
Option 3: Indian Dividend Ratio
Option 4: International Debt Redemption
Correct Answer: International Depository Receipt
Solution : The correct answer is (b) International Depository Receipt
An International Depository Receipt (IDR) is a financial instrument denominated in a foreign currency and is offered by a non-resident company outside the country where it is listed. IDRs represent shares of the foreign company and can be traded on international stock exchanges, allowing companies to raise capital from investors in foreign markets.
Question : Case Study: PQR Enterprises - Funding Strategies for Diversification
PQR Enterprises is a well-established conglomerate planning to diversify its business operations. The company is evaluating various sources of business finance to support its diversification plans.
Questions : Business Finance and Diversification
In the context of business finance, what does "diversification" refer to?
Option 1: Increasing shareholder dividends
Option 2: Expanding to international markets
Option 3: Reducing company workforce
Option 4: Expanding into new business areas
Correct Answer: Expanding into new business areas
Solution : The correct answer is (d) Expanding into new business areas
Diversification involves entering into new markets, launching new products or services, or expanding business operations into different areas or industries. The objective is to spread business risk by participating in various activities that may have different market dynamics, revenue streams, and growth potentials. This strategy helps the company balance its portfolio and reduce dependence on a single business line, potentially enhancing overall business sustainability and profitability.
Question : Comprehension:
Read the given passage and answer the questions that follow.
Such examples of commercial success, innovation, drive, vision, determination, adaptability, and adventure are anchored in the basic Indian openness to, and talent for, acquiring material wealth. For every success story, there are, of course, dozens of failures. Traditional Indian firms have their strengths, but also their weaknesses, and of these perhaps the most debilitating are a lack of teamwork and a weakness for a quick profit. These reflect ingrained ways of thinking and planning, as does the distrust of anyone outside the family, which inhibits the adoption of modern practices of management. But such weaknesses are more than compensated for by the desire to succeed, which is probably more intense in India, given the omnipresent fear of poverty, the cut-throat competition for each opportunity, and the asphyxiating hold of hierarchy.
Question:
Select the most appropriate ANTONYM of the given word with reference to its usage in the passage.
Debilitating
Option 1: Enfeebling
Option 2: Crippling
Option 3: Invigorating
Option 4: Undermining
Correct Answer: Invigorating
Solution : The correct choice is the second option.
Debilitating means to make someone very weak, whereas, "invigorating" means to make one feel strong and full of energy. Thus, making it the correct antonym for the given word.
The meanings of the other options are as follows:
- Enfeeble means to make weak, which is similar to "debilitate".
- Crippling means causing a person to become unable to walk.
- Undermining means the process of lessening the power or ability of someone or something.
Question : Case Study: ABC Retail Chain
ABC Retail Chain is a popular brand with multiple stores across the country. They are planning to expand their product range by adding organic and eco-friendly products.
Question:
The importance of planning for ABC Retail Chain in expanding their product range includes:
Option 1: Enhancing the decision-making process
Option 2: Limiting financial resources
Option 3: Ignoring external factors
Option 4: Restricting employee autonomy
Correct Answer: Enhancing the decision-making process
Solution : The correct answer is (a) Enhancing the decision-making process
Planning is crucial for making informed and effective decisions. In the context of expanding the product range, planning helps ABC Retail Chain analyze market trends, consumer preferences, and competitive landscapes. It enables them to make strategic decisions about which organic and eco-friendly products to introduce, where to place them in stores, and how to market them. Limiting financial resources, ignoring external factors, and restricting employee autonomy can be detrimental to successful expansion efforts. Planning, on the other hand, provides a structured approach to consider various factors and make well-thought-out decisions.
Question : Read the passage given below and then answer the questions given below the passage. Some words may be highlighted for your attention. Read carefully.
Billionaire Mukesh Ambani's telecom venture Reliance Jio Infocom is planning to foray into automobile telematics with the launch of a device that will control vehicle's movement and alert owner about fuel and battery through a mobile app. "Reliance Jio is ready with a car connected device that will have multiple features like immobilize car at the time of theft, alert owner about car movement, locate car and also provide wi-fi within car, The owner needs to use Jio sim in the device to avail benefits." an industry source said. The company is in advance talks with automobile companies to launch it very soon. "There are lots of factors that determine price, but price of the car connected device is estimated to be either equal to or less than its Jio's wifi device which costs around Rs 2,000," the source said. With help of Jio's car management device, the owner will get information about the way his driver is driving the car, the movement of vehicle can be restricted within a geography, switch on AC of car from any remote location, get alert of car break etc. "Jio is working on the modalities on its sales model for the existing cars as well" the source said. The device and application has been internally developed by Jio but the hardware device will be initially imported from China. "Jio has asked its device vendor to start making it in India after initial rollout," the source said. Besides this, the company is also scaling up its fibre to the home project for which it is running pilot in some cities including Delhi and Mumbai. "With Fibre to the home, Jio will focus on automatic entire home from entertainment to home surveillance to utility management, the source said. Jio has touched a customer base 7.24 crore and claims to be adding 1 lakh mobile subscribers per day. The company has set target to cross 10 crore customers by March 31, 2017.
Question:
Which of the following is ensured mostly through the use of JIO sim?
Option 1: Security
Option 2: Better models
Option 3: More entertainment
Option 4: More comfort
Correct Answer: Security
Solution : The correct answer is option 1.
Explanation
Reading over all the services that Jio may offer via the Jio sim, it can be deduced that everything will be incredibly safe, from a car's position to its immobility when stolen or managing things in a home.
As a result, choice 1 is the right response.
Question : Comprehension:
Read the given passage and answer the questions that follow.
With an impressive growth in yields, Telangana now claims to be transforming into the rice bowl of India. The Food Corporation of India (FCl) has procured 52 lakh tonnes of paddy from Telangana alone, which is more than half of the national target of 91 lakh tonnes. The state's harvests have nearly doubled in a year. Paddy production is up 93%, maize 95%, and cotton 74%, according to the Telangana Planning Department.
The state is also making its mark as a producer of paddy seed. "About 85% of our village's paddy is of a fine variety that farmers in MP, Haryana, Bengal, and Bihar use as seed," said a farmer in Anksapur Village in Nizamabad district. The seed crop sells at a premium over the state's minimum support price for paddy.
Question:
According to the passage, in one year, the harvests in the state of Telangana have:
Option 1: remained the same
Option 2: almost doubled
Option 3: decreased sharply
Option 4: increased many times
Correct Answer: almost doubled
Solution : The correct option is the second option.
Explanation:
The passage mentions that paddy production is up by 93%, maize by 95%, and cotton by 74%, according to the Telangana Planning Department. These significant percentage increases indicate a substantial rise in harvests across various crops, suggesting that the harvests in Telangana have almost doubled in just one year.
Therefore, the correct answer is, almost doubled.
