Correct Answer: Evaluating alternative courses

Solution : After creating a list of various alternatives and the assumptions that support them, the manager begins evaluating each alternative and noting the positive and negative aspects of each alternative. The evaluation of alternative courses is discussed in the preceding case.
Hence, option 4 is the correct answer.

Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
    

Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Financial planning is the process of creating a roadmap for how a business will use its financial resources to achieve its goals. One of the most common goals of financial planning is to maximize shareholder wealth and company value. This can be achieved by making sound financial decisions, such as investing in profitable projects, expanding into new markets, and acquiring other companies.

While financial planning may consider the interests of other stakeholders, such as employees, customers, and suppliers, the primary goal is to maximize shareholder wealth and company value. This is because shareholders are the owners of the company, and they have a right to expect that their investment will be profitable.

Overall, financial planning is an essential tool for businesses that want to maximize shareholder wealth and company value. By making sound financial decisions, businesses can invest in new opportunities, grow their businesses, and increase their profitability.

Correct Answer: Finance Commission

Solution : The correct option is the Finance Commission.

According to the Indian Constitution, the Finance Commission holds the status of a constitutional entity. with its primary responsibility being to provide recommendations regarding the allocation of financial resources between the central government and state governments. The Planning Commission is categorized as a statutory body.

Correct Answer: Acquiring funds for business operations and expansion
 

Solution : The correct answer is (b) Acquiring funds for business operations and expansion

Business finance involves acquiring the necessary funds and managing financial resources to support a company's day-to-day operations, projects, and future growth. It encompasses activities related to budgeting, financial forecasting, investment decisions, obtaining loans or equity, managing working capital, and overall financial planning to ensure the efficient use of financial resources for achieving the company's objectives.

Correct Answer: Reduced risk of fraud
 

Solution : The correct answer is (b) Reduced risk of fraud

The primary benefit of opening a demat account for trading securities is the reduced risk of fraud. A demat account holds your securities in an electronic or dematerialized form, eliminating the need for physical share certificates. This reduces the risk of theft, loss, forgery, or other fraudulent activities associated with paper-based securities. Additionally, dematerialization ensures that ownership and transactions related to securities are securely and accurately recorded, minimizing the risk of fraud and providing a more secure and efficient way to hold and trade securities.

Correct Answer: NITI Aayog

Solution : The correct answer is NITI Aayog.

Established in 2015 by the NDA government, NITI Aayog replaced the Planning Commission. The NITI Aayog council includes all state chief ministers, Chief Ministers of Delhi and Puducherry, Lieutenant Governors of Union Territories and a vice-chairman appointed by the prime minister. NITI Aayog is an abbreviated form for National Institution for Transforming India and acts as the primary public policy think tank for the Indian government. Its role involves driving economic development, promoting cooperative federalism and shifting from bargaining federalism by engaging state governments in the economic policy-making process, employing a bottom-up approach.

Correct Answer: Reduced risk of fraud
 

Solution : The correct answer is (b) Reduced risk of fraud

The primary benefit of opening a demat account for trading securities is the reduced risk of fraud. A demat account holds your securities in an electronic or dematerialized form, eliminating the need for physical share certificates. This reduces the risk of theft, loss, forgery, or other fraudulent activities associated with paper-based securities. Additionally, dematerialization ensures that ownership and transactions related to securities are securely and accurately recorded, minimizing the risk of fraud and providing a more secure and efficient way to hold and trade securities.

Correct Answer: Measurable and specific goals

Solution : The correct answer is (c) Measurable and specific goals

Measurable and specific goals is a key characteristic of effective planning. Goals should be clear, specific, and measurable to provide a concrete target for the organization. Measurable goals allow for tracking progress and assessing the success of the plan.

In summary, ABC Educational Institute should consider setting measurable and specific goals as a characteristic of effective planning. This ensures clarity, accountability, and the ability to assess progress toward the desired outcomes.