Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.

The assertion is true. Financial planning is indeed necessary for achieving business objectives effectively. Financial planning involves setting goals, assessing the financial resources required to achieve those goals, and creating a strategy to allocate and manage those resources effectively to meet the business objectives.

The reason is the correct explanation. Financial planning helps allocate funds optimally and avoids wastage. By planning and managing finances effectively, a business can ensure that funds are allocated where they are needed most, avoiding unnecessary expenditures and optimizing resource utilization. This, in turn, helps the business achieve its objectives in a cost-effective and efficient manner.