Question : Read the following statements of Assertion (A) and Reason(R) and choose the correct alternative: Assertion (A):Primary aim of financial management is to maximise shareholder's wealth. Reason (R):Company's funds belong to the shareholders and the return earned by them determine their market value and price.
Option 1: Both A and R correct and R is the correct explanation of A.
Option 2: A is correct and R is wrong.
Option 3: A is wrong and R is correct
Option 4: Both A and R are correct but R is not the correct explanation of A.
Correct Answer: Both A and R correct and R is the correct explanation of A.
Solution : The primary aim of Financial Management is to maximize the wealth of shareholders because companies funds belong to the shareholders and the return earned by them determine their market value and price.
Hence, option A is correct.
Question : Assertion: Lower-level management is responsible for creating long-term strategic plans.
Reason: They have a better understanding of the organization's day-to-day operations.
Question : Assertion: Scientific management principles aim to optimize worker output.
Reason: It promotes standardization and specialization in tasks.
Question : Assertion: Scientific management principles aim to improve the overall efficiency of the organization.
Reason: It focuses on optimizing individual work performance to achieve organizational goals.
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