Question

Modern approach of financial management is

• A. Procurement of funds
• B. Utilisation of funds
• C. Both (A) and (B)
• D. None of these

Hint:

Effective financial management combines securing funds (procurement) and using them efficiently (utilization) to ensure business success.

Answer 1

The Correct Option is C

Step 1: Understanding modern financial management.
Modern financial management is concerned with both acquiring the necessary funds (procurement of funds) and utilizing those funds efficiently to maximize returns and maintain liquidity. It is a combination of both securing capital and effectively managing it.
Step 2: Analyzing the options.
(A) Procurement of funds: This is an essential part of financial management but does not cover the entire scope of modern financial management.
(B) Utilisation of funds: This is another important aspect, but on its own, it does not constitute the complete approach.
(C) Both (A) and (B): Correct. Financial management involves both obtaining funds and utilizing them efficiently.
(D) None of these: Incorrect. Both procurement and utilization are key components of modern financial management.
Step 3: Conclusion.
The correct answer is (C) Both (A) and (B), as modern financial management covers both securing funds and managing them efficiently.