55 Views

Question : Assertion-Reason Questions: Chapter - Sources of Business Finance

Questions : Business Finance and Its Meaning

Assertion: Need for business finance arises due to various uncertainties and risks associated with business activities.

Reason: Financial planning eliminates all forms of business risk and uncertainties.

Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
   

Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
    

Option 3: Assertion is true, but the reason is false.

 

Option 4: Both assertion and reason are false.


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

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. Businesses face uncertainties and risks regularly, such as market fluctuations, economic changes, competition, and other variables. Business finance is needed to mitigate and manage these risks effectively.

The reason is false. Financial planning does not eliminate all forms of business risk and uncertainties. While financial planning helps in managing and mitigating risks by providing a structured approach to financial management, it cannot completely eliminate the inherent risks and uncertainties associated with business activities. Risk management is a part of financial planning, but it doesn't eradicate risks altogether.

Related Questions

UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
Jindal Global Law School Admi...
Apply
Ranked #1 Law School in India & South Asia by QS- World University Rankings | Merit cum means scholarships | Application Deadline: 30th Nov'24
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024 | Application Deadline: 1st Dec 2024
ICFAI Business School-IBSAT 2024
Apply
9 IBS Campuses | Scholarships Worth Rs 10 CR
UPES B.Tech Admissions 2025
Apply
Ranked #42 among Engineering colleges in India by NIRF | Highest CTC 50 LPA , 100% Placements
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books