Financial Planning

Q.

Discuss the two objectives of financial planning.

Q.

___ is the process of estimating the financial requirements of an organisation specifying the sources of funds and ensuring that enough funds are available at the right time.

1. Investment Decision

2. Dividend Decision

3. Financial Decision

4. Financial Planning

Q.

CAPM stands for

1. Capital asset pricing model

2. Capital amount printing model

3. Capital amount pricing model

4. Capital asset printing model

Q. Which of the following are objectives of financial planning?

1. To ensure availability of funds whenever required.
2. To help in coordinating various business functions.
3. To see that firm does not raise resources unneessarily.
4. To see that firms focus on long term growth and investment matters.

Q.

Which of the following is not important to financial planning?

1. It helps in coordinating various business functions.

2. It helps to reduce waste, duplication of efforts, and gaps in planning.

3. It helps in avoiding business shocks and surprises.

4. It tries to delink the present with the future.

Q.

The size of assets, profitability, and competitiveness are all affected by _____.

1. Financing decision

2. Capital budgeting decision

3. Dividend decision

4. Working capital decision

Q. Explain the term 'Financial Management'.

Q. What is meant by 'financial management'?

Q.

'Financial planning tries to link the present with the future'. Explain the importance of financial planning in the light of this statement.

Q.

Discuss the two objective of Financial Planning.

Q.

Financial planning arrives at:

(a) Minimising the external borrowing by resorting to equity issues

(b) Entering that the firm always have significantly more fund than required so that there is no paucity of funds

(c) Ensuring that the firm faces neither a shortage nor a glut of unusable funds

(d) Doing only what is possible with the funds that the firms have at their disposal

Q.

Financial planning arrives at

1. ensuring that the firm paces neither a shortage nor a glut of unusable funds

2. doing only what is possible with the funds that the firm has at its disposal.

3. minimising the external borrowing by resorting to equity issues

4. entering that the firm always have significantly more fund than required so that there is no paucity of funds

Q. 'Financial Planning is a financial blueprint of an organisation's future operations'. Explain the twin objectives of Financial Planning in the light of this statement.

Q.

Financial planning arrives at:

1. entering that the firm always have significantly more funds than required so that there is no paucity of funds

2. ensuring that the firm faces neither a shortage nor a glut of unusable funds

3. minimising the external borrowing by resorting to equity issues

4. doing only what is possible with the funds that the firms has at its disposal

Q. Explain the meaning of Financial Planning. Why is it important? Give any two reasons.

Q. Which of the following are factors affecting capital budgeting?

1. All of the above
2. Cash flows of the project
3. The rate of return
4. The investment criteria involved

Q. Financial management aims at _________ the cost of funds procured, keeping the risk under control and achieving effective deployment of such funds.

1. increasing
2. reducing
3. equaling
4. nullifying

Q. "Business finance includes those business activities which are concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of business enterprise." This definition is given by -

1. ICSI
2. B.O. Wheeler
3. Howard and Upton
4. ICAI

Q. Which of the following is the importance of financial planning?

1. All of the above.
2. It tries to forecast that may happen in future under different business situations.
3. It helps in avoiding business shocks and surprises and helps the company in preparing for the future.
4. It provides a link between investment and financing decisions on a continuous basis.

Q. To avoid the problem of shortage and surplus of funds, what is required in financial management?

Q. What are the twin objectives of financial planning?

1. To see that the firm does not raise resources unnecessarily
2. Both a and b
3. To ensure availability of funds whenever require
4. None of the above

Q. Financial planning is a process of estimating and determining the source of funds.

1. False
2. True

Q. Financial planing ensures availability of funds for purchasing long term assets.

1. True
2. False

Q. Financial planning ensures that funds are not raised unnecessarily.

1. True
2. False

Q. Which of the following is not a feature of payback period method?

1. It does not consider the time value of money.
2. It is very difficult to calculate.
3. It is simply a method of cost recovery and not of profitability.
4. It does not consider the risk associated with the projects.