Question : Questions : Business Finance and Its Meaning

Statement 1: Financial planning plays a critical role in optimizing the allocation of funds.

Statement 2: Financial planning focuses only on allocation of funds to marketing 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.


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

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 crucial for optimizing the allocation of funds across various activities within a business. It involves analyzing financial resources and determining the best allocation to achieve the organization's goals and objectives efficiently.

Statement 2 is false. Financial planning does not focus only on the allocation of funds to marketing activities. Financial planning is a comprehensive process that considers allocation of funds across all areas of a business, including operations, marketing, research and development, expansion, debt repayment, investments, and more. It aims to optimize the allocation of funds across all relevant aspects of the business.

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