The financial planning strives to achieve the following objectives:
A. To ensure availability of funds whenever required
B. To raise funds only through long-term sources of capital such as equity or preference shares
C. To see that the firm does not raise resources unnecessarily
D. To ensure idle funds at the disposal of an enterprise.
Choose the correct answer from the options given below:
The financial planning strives to achieve the following objectives:
A. To ensure availability of funds whenever required
B. To raise funds only through long-term sources of capital such as equity or preference shares
C. To see that the firm does not raise resources unnecessarily
D. To ensure idle funds at the disposal of an enterprise.
Choose the correct answer from the options given below:
Solution
The twin objectives of financial planning are: (A) to ensure availability of funds whenever required, and (C) to see that the firm does not raise resources unnecessarily, since excess funding is almost as bad as inadequate funding. Restricting fund raising only to long-term sources (B) and keeping idle funds (D) are not objectives. Hence A and C only.
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