Financial Management · Class 12 · CBSE · Commerce Business Studies
Which statement best describes the purpose of financial planning in a business?
Practice question from Financial Management (Class 12 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
easy · MCQ · Q-4852D8
Which statement best describes the purpose of financial planning in a business?
- A.To determine the exact market share the business will achieve
- B.To estimate fund requirements and decide the sources and timing of fundsCorrect answer
- C.To eliminate all business risks
- D.To fix the selling price of every product
Solution
Financial planning estimates the amount of funds required, the timing of requirements, and the possible sources of finance. It helps ensure that funds are available when needed.
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