Correct Answer: Outsourcing training

Solution : The correct answer is (d) Outsourcing training

When the HR manager at PQR Inc. decides to use external consultants to provide specialized training to employees for their new roles, the strategy being employed is outsourcing training. Outsourcing training involves hiring external experts or consultants to deliver specific training programs or sessions to employees, leveraging external expertise to meet the organization's training needs. This approach is common when organizations seek specialized knowledge or skills that may not be available internally.

Correct Answer: Maximizing shareholder wealth
   

Solution : The correct answer is (a) Maximizing shareholder wealth

Financial planning in a corporation involves strategies and actions aimed at optimizing the use of financial resources to achieve long-term goals and ultimately enhance shareholder wealth. It encompasses planning for investments, managing cash flows, optimizing capital structure, and making informed financial decisions to increase profitability, drive growth, and maximize the value of the business for its shareholders. While meeting daily operational expenses and ensuring efficient resource utilization are important aspects of financial planning, the overarching objective is to create value and wealth for the shareholders.

Correct Answer: Mergers and acquisitions

Solution : The correct answer is (c) Mergers and acquisitions

Diversifying into the healthcare industry often involves strategic moves like mergers and acquisitions, where LMN Corporation may acquire existing healthcare businesses or merge with healthcare-related companies to expand its operations and presence in this new sector. Mergers and acquisitions are common strategies for corporations looking to enter new markets and diversify their business portfolio.

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: Mergers and acquisitions

Solution : The correct answer is (c) Mergers and acquisitions

Diversifying into the healthcare industry often involves strategic moves like mergers and acquisitions, where LMN Corporation may acquire existing healthcare businesses or merge with healthcare-related companies to expand its operations and presence in this new sector. Mergers and acquisitions are common strategies for corporations looking to enter new markets and diversify their business portfolio.

Correct Answer: By allocating funds effectively for green projects
  

Solution : The correct answer is (b) By allocating funds effectively for green projects

Financial planning involves allocating financial resources in a strategic manner to support the company's objectives and initiatives. In the context of sustainability, UVW Industries can allocate funds specifically for green projects that align with their sustainable initiatives. This includes budgeting and financial forecasting to ensure that adequate funds are set aside for research, development, implementation, and maintenance of eco-friendly practices and projects.

Correct Answer: Instruments for raising funds in foreign markets

Solution : The correct answer is (d) Instruments for raising funds in foreign markets

GDRs and ADRs are financial instruments that represent shares of a foreign company and are traded on international stock exchanges. They allow companies like XYZ Ltd. to raise funds from investors in foreign markets without directly listing their shares on those markets. GDRs are typically issued outside the United States, while ADRs are issued in the United States. Both GDRs and ADRs facilitate access to a broader base of international investors and provide a way to raise capital by issuing shares to investors in different parts of the world.

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 does assist in the optimal allocation of financial resources for various business activities. It involves planning for both short-term and long-term financial goals to ensure efficient use of resources.

Statement 2 is false. Financial planning is not solely focused on short-term goals. It encompasses a comprehensive approach, including both short-term and long-term financial objectives. Effective financial planning considers the long-term sustainability and growth of the business, not just short-term gains.

Correct Answer: Facilitating trading of securities

Solution : The correct answer is (c) Facilitating trading of securities

The primary function of a stock exchange is to facilitate the trading of securities. Stock exchanges provide a marketplace where buyers and sellers can come together to buy and sell shares, bonds, and other financial instruments. They offer a platform for transactions to occur in a regulated and transparent manner, ensuring fair pricing and efficient execution of trades. The stock exchange acts as an intermediary that helps in matching buy and sell orders, providing liquidity, and maintaining an organized and efficient market for securities trading.

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.

This statement is true. One of the key goals of financial planning is to ensure that a business has the resources it needs to operate and grow. This involves allocating funds to different business activities.

This statement is false. Financial planning should always consider a business's long-term goals. This is because financial decisions today will have a significant impact on the business's ability to achieve its long-term goals in the future.