Question:
The process of estimating the fund requirements of a business and specifying the sources of funds is called
The process of estimating the fund requirements of a business and specifying the sources of funds is called
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Remember: "Estimating requirements" and "Specifying sources" are the twin pillars of Financial Planning.
Updated On: Jun 25, 2026
- Trading on Equity
- Capital Budgeting decision
- Financial Management
- Financial Planning
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The Correct Option is D
Solution and Explanation
Step 1: Concept
Core principles of Financial Management.
Step 2: Meaning
Financial Planning entails the preparation of a financial blueprint for an organization's future, ensuring that enough funds are available at the right time.
Step 3: Analysis
• Trading on Equity refers to utilizing fixed financial cost sources (like debt) to try and increase earnings per share for equity shareholders.
• Capital Budgeting revolves around making critical decisions regarding investment in long-term assets.
• Financial Management is the broader concept dealing with the overall optimal procurement and usage of finance.
• Financial Planning specifically and fundamentally involves estimating the precise quantum of funds needed and determining the best sources to raise them.
Step 4: Conclusion
Therefore, estimating fund requirements and proactively specifying their sources perfectly describes Financial Planning.
Final Answer: (D)
Core principles of Financial Management.
Step 2: Meaning
Financial Planning entails the preparation of a financial blueprint for an organization's future, ensuring that enough funds are available at the right time.
Step 3: Analysis
• Trading on Equity refers to utilizing fixed financial cost sources (like debt) to try and increase earnings per share for equity shareholders.
• Capital Budgeting revolves around making critical decisions regarding investment in long-term assets.
• Financial Management is the broader concept dealing with the overall optimal procurement and usage of finance.
• Financial Planning specifically and fundamentally involves estimating the precise quantum of funds needed and determining the best sources to raise them.
Step 4: Conclusion
Therefore, estimating fund requirements and proactively specifying their sources perfectly describes Financial Planning.
Final Answer: (D)
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