Correct Answer: Both incorrect.

Solution : The correct answer is  (b) Both incorrect.

Statement 1 is incorrect. Strategic control is not primarily concerned with short-term planning; it is focused on the long-term strategic direction of an organization. It involves monitoring and adjusting an organization's strategic plans to ensure they align with long-term objectives.

Statement 2 is incorrect. Strategic control does not focus on day-to-day operations. It is more concerned with high-level, long-term strategic decisions and their implementation, rather than the detailed evaluation of day-to-day activities.

Correct Answer: First Five-Year Plan

Solution : The correct answer is (a) First Five-Year Plan.

The First Five-Year Plan, covering the period from 1951 to 1956, marked the beginning of economic planning in India. It was launched by the Indian government under the leadership of Prime Minister Jawaharlal Nehru with the objective of rapid industrialization and economic development. The plan focused on agriculture, irrigation, power, and transport infrastructure, with an emphasis on reducing poverty and increasing employment opportunities. The First Five-Year Plan laid the foundation for subsequent plans and the process of planned economic development in India.

Correct Answer: Ownership in the company

Solution : The correct answer is (c) Ownership in the company

Equity shares represent ownership or equity ownership in a company. Shareholders who hold equity shares have ownership rights in the company, which typically includes voting rights, the right to share in the company's profits (through dividends), and the right to participate in decision-making processes related to the company's operations and policies. Unlike debt securities (e.g., debentures), equity shares do not guarantee fixed dividend payments or redemption; instead, the dividend payments to equity shareholders are variable and based on the company's profitability and the decisions of the board of directors.

Correct Answer: It allocates funds effectively for innovation projects

Solution : The correct answer is (c) It allocates funds effectively for innovation projects

Financial planning plays a crucial role in guiding LMN Ventures' research and development (R&D) goals by effectively allocating funds for innovation projects. Proper financial planning ensures that resources are allocated to R&D initiatives in a strategic and efficient manner, enabling the organization to pursue its research and innovation goals effectively. This involves budgeting, forecasting, and determining the financial resources needed to support various R&D projects and activities.

Correct Answer: Evaluating alternative courses of action
    

Solution : The correct answer is (a). Evaluating alternative courses of action

Evaluating alternative courses of action is often a crucial step, but not necessarily the immediate next one. Depending on the complexity of the expansion plan and the level of detail already explored in the identified courses of action. Evaluating alternative courses of action, if they have well-defined objectives and sufficient information to proceed.

Correct Answer: Strategic plan
 

Solution : The correct answer is (b) Strategic plan

A strategic plan is the most appropriate for guiding the overall direction and long-term goals of the organization. It involves making decisions about resource allocation, defining objectives, and setting strategies to achieve those objectives. In the case of ABC Retail Chain, a strategic plan would help outline the expansion goals, target markets, product range, and overall approach to achieving success in new areas.

Correct Answer: Debentures provide ownership rights
 

Solution : The correct answer is (a) Debentures provide ownership rights

Debentures represent a form of debt where the holders (debenture holders) are creditors to the company and do not possess ownership rights in the company. They are entitled to receive a fixed rate of interest and the repayment of the principal amount at maturity.

On the other hand, equity shares represent ownership in the company and provide shareholders with ownership rights, including voting rights and the right to share in the company's profits (through dividends). Unlike debentures, equity shares do not involve fixed interest payments or repayment at maturity.

Correct Answer: IPO (Initial Public Offering)
 

Solution : The correct answer is (a) IPO (Initial Public Offering)

An IPO is a process through which a private company goes public by offering its shares to the public for the first time. This allows the company to raise significant funds by selling ownership stakes (equity) to investors, which can then be used to fund expansion plans and other business initiatives, including global expansion. Going public through an IPO is a common approach for companies seeking to raise substantial capital for growth and expansion.

Correct Answer: Assertion is true, but the reason is false.

Solution : The correct answer is  (c) Assertion is true, but the reason is false.

The assertion that "Financial planning contributes to maximizing the wealth of shareholders and stakeholders" is true. Financial planning involves strategic decisions aimed at optimizing financial resources and investments to achieve long-term growth and ultimately enhance the wealth of shareholders and stakeholders.

The reason that "Financial planning only considers short-term profitability and ignores long-term growth" is false. Financial planning encompasses both short-term and long-term financial goals. It involves planning for the future, considering long-term sustainability, growth, and the creation of shareholder value, not just short-term profitability. Financial planning aims to strike a balance between short-term gains and long-term objectives. It is designed to consider both short-term and long-term financial health and growth of the company.

Correct Answer: Privatization of public sector enterprises

Solution :  A key feature of the New Economic Policy of 1991 in India was the privatization of public sector enterprises, aimed at reducing the role of the government in the economy and promoting private investment.