Financial planning arrives at:

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

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

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minimising the external borrowing by resorting to equity issues

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

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Solution

The correct option is B
ensuring that the firm faces neither a shortage nor a glut of unusable funds

Financial planning is the process of estimating the fund requirement of a business and specifying the sources of funds. It decides how much to spend and on what to spend. Thus ensures optimal utilisation of funds.

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Similar questions

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

(d) doing only what is possible with the funds that the firms has at its disposal

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. It is used by one bank having surplus funds to meet the fund requirements of another bank that is facing shortage of funds. Identify what this is.

Name the financial instrument which may be used in the following situation.

It is used by one bank having surplus funds to meet the funds requirements of another bank facing shortage of funds.

___ 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.

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