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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): The need for financial planning in a concern can be over-emphasised.
Reason (R): Financial planning helps to provide ahead for any more funds, if required.
- a)Both A and R are true and R is the correct explanation of A
- b)Both A and R are true, but R is not the correct explanation of A
- c)A is true, but R is false
- d)A is false, but R is true
Correct answer is option 'D'. Can you explain this answer?
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Direction: In the questions given below are two statements labelled a...
Assertion (A): The need for financial planning in a concern can be over-emphasized.
Reason (R): Financial planning helps to provide ahead for any more funds, if required.
The correct answer is option 'D' - A is false, but R is true.
Explanation:
Financial Planning: Financial planning refers to the process of setting financial goals, determining the steps required to achieve those goals, and creating a plan to allocate and manage financial resources effectively.
Need for Financial Planning: Financial planning is crucial for any organization, whether it is a small business or a large corporation. It helps in ensuring that the company's financial resources are utilized efficiently and effectively. Some of the key reasons why financial planning is important for a concern are as follows:
1. Goal Setting: Financial planning helps in setting realistic financial goals for the organization. It provides a clear roadmap for the company's financial future and helps in determining the resources required to achieve those goals.
2. Resource Allocation: Financial planning helps in allocating financial resources effectively. It ensures that the company's funds are allocated to the right areas and are utilized optimally. This includes budgeting, cost control, and resource management.
3. Risk Management: Financial planning helps in identifying and managing financial risks. It includes assessing potential risks and implementing strategies to mitigate them. This ensures that the company is prepared for any unforeseen financial challenges.
4. Capital Planning: Financial planning helps in determining the company's capital requirements. It involves analyzing the company's current financial position, forecasting future needs, and planning for the acquisition of additional funds if required. This ensures that the company has adequate capital to support its operations and growth.
5. Profit Maximization: Financial planning helps in maximizing profits by identifying opportunities for revenue generation and cost reduction. It includes analyzing financial statements, conducting financial analysis, and making informed decisions to optimize profitability.
Assertion (A): The need for financial planning in a concern can be over-emphasized:
This statement is false. The need for financial planning in a concern cannot be over-emphasized. Financial planning is essential for the long-term success and sustainability of any organization. It provides a strategic framework for managing financial resources and achieving financial goals. Without proper financial planning, a concern may face financial instability, inefficiency, and inability to achieve its objectives.
Reason (R): Financial planning helps to provide ahead for any more funds, if required:
This statement is true. One of the key benefits of financial planning is that it helps in anticipating and planning for future financial needs. By analyzing the company's financial position and forecasting future requirements, financial planning enables the organization to identify potential funding gaps in advance. This allows the concern to explore various funding options such as loans, equity financing, or internal sources to ensure that additional funds are available when needed.
In conclusion, while the reason provided is true, the assertion that the need for financial planning in a concern can be over-emphasized is false. Financial planning is crucial for the success of any organization and helps in ensuring efficient allocation and management of financial resources.
Reason (R): Financial planning helps to provide ahead for any more funds, if required.
The correct answer is option 'D' - A is false, but R is true.
Explanation:
Financial Planning: Financial planning refers to the process of setting financial goals, determining the steps required to achieve those goals, and creating a plan to allocate and manage financial resources effectively.
Need for Financial Planning: Financial planning is crucial for any organization, whether it is a small business or a large corporation. It helps in ensuring that the company's financial resources are utilized efficiently and effectively. Some of the key reasons why financial planning is important for a concern are as follows:
1. Goal Setting: Financial planning helps in setting realistic financial goals for the organization. It provides a clear roadmap for the company's financial future and helps in determining the resources required to achieve those goals.
2. Resource Allocation: Financial planning helps in allocating financial resources effectively. It ensures that the company's funds are allocated to the right areas and are utilized optimally. This includes budgeting, cost control, and resource management.
3. Risk Management: Financial planning helps in identifying and managing financial risks. It includes assessing potential risks and implementing strategies to mitigate them. This ensures that the company is prepared for any unforeseen financial challenges.
4. Capital Planning: Financial planning helps in determining the company's capital requirements. It involves analyzing the company's current financial position, forecasting future needs, and planning for the acquisition of additional funds if required. This ensures that the company has adequate capital to support its operations and growth.
5. Profit Maximization: Financial planning helps in maximizing profits by identifying opportunities for revenue generation and cost reduction. It includes analyzing financial statements, conducting financial analysis, and making informed decisions to optimize profitability.
Assertion (A): The need for financial planning in a concern can be over-emphasized:
This statement is false. The need for financial planning in a concern cannot be over-emphasized. Financial planning is essential for the long-term success and sustainability of any organization. It provides a strategic framework for managing financial resources and achieving financial goals. Without proper financial planning, a concern may face financial instability, inefficiency, and inability to achieve its objectives.
Reason (R): Financial planning helps to provide ahead for any more funds, if required:
This statement is true. One of the key benefits of financial planning is that it helps in anticipating and planning for future financial needs. By analyzing the company's financial position and forecasting future requirements, financial planning enables the organization to identify potential funding gaps in advance. This allows the concern to explore various funding options such as loans, equity financing, or internal sources to ensure that additional funds are available when needed.
In conclusion, while the reason provided is true, the assertion that the need for financial planning in a concern can be over-emphasized is false. Financial planning is crucial for the success of any organization and helps in ensuring efficient allocation and management of financial resources.
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Direction: In the questions given below are two statements labelled a...
A financial plan acts as a guide as you go through life's journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals. This is where financial planning becomes essential.
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The need for financial planning in a concern can be over-emphasised.Reason (R): Financial planning helps to provide ahead for any more funds, if required.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'D'. Can you explain this answer?
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The need for financial planning in a concern can be over-emphasised.Reason (R): Financial planning helps to provide ahead for any more funds, if required.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The need for financial planning in a concern can be over-emphasised.Reason (R): Financial planning helps to provide ahead for any more funds, if required.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The need for financial planning in a concern can be over-emphasised.Reason (R): Financial planning helps to provide ahead for any more funds, if required.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'D'. Can you explain this answer?.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The need for financial planning in a concern can be over-emphasised.Reason (R): Financial planning helps to provide ahead for any more funds, if required.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The need for financial planning in a concern can be over-emphasised.Reason (R): Financial planning helps to provide ahead for any more funds, if required.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The need for financial planning in a concern can be over-emphasised.Reason (R): Financial planning helps to provide ahead for any more funds, if required.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'D'. Can you explain this answer?.
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