Question : Questions : Business Finance and Its Meaning

Statement 1: Financial planning plays a vital role in allocating funds optimally.

Statement 2: Financial planning focuses solely on marketing and sales strategies.

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 13th Jan, 2024
Answer (1)
Team Careers360 20th 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 plays a vital role in allocating funds optimally across various activities and departments within a business. It involves budgeting, investment decisions, risk management, and financial resource allocation to achieve organizational goals efficiently.

Statement 2 is false. Financial planning is not solely focused on marketing and sales strategies. While financial planning may encompass aspects related to marketing and sales budgeting, its scope is much broader, covering all financial aspects of a business, including budgeting for operations, investments, expansion, risk management, and more.

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