Financial planning works towards ____________.

minimising the external brrowing by resorting to equity issues

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ensuring that the firm always have significantly more fund 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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doing only what is possible with the funds that the firm has at its disposal

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Solution

The correct option is C ensuring that the firm faces neither a shortage nor a glut of unusable funds
Financial planning is the process of estimating the capital required and determining it’s competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.
Hence financial planning relates to optimum utilization of funds and ensure full utilization of unusable funds too.

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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.

___ may be defined as those decisions, which are related to the investment of funds into different assets in a manner so that the firm is able to earn the highest possible returns for their investors.

Q. If the market value of debt of a firm is Rs. 40 lakhs, that of equity is Rs. 60 lakhs and the costs of equity and debt are

16 %

and

14 %

respectively, the net operating income for the firm if the firm has

100 %

dividend payment and no taxes is _______________.

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