Question:
Which of the following statements is not highlighting the importance of financial planning:
Which of the following statements is not highlighting the importance of financial planning:
Show Hint
Effective financial planning ensures stability, resource optimization, and better decision-making for businesses.
Updated On: Jan 13, 2026
- It helps in forecasting what may happen under different business situations.
- It helps in avoiding business shocks and surprises and helps the company in preparing for the future.
- It provides a link between investment and financing decisions on a continuous basis.
- Detailed plans of action prepared under financial planning increase waste, duplication of efforts, and gaps in planning.
Show Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
Step 1: Understanding Financial Planning
Financial planning ensures the effective allocation of resources and minimizes risks associated with uncertainties.
Step 2: Identifying the Incorrect Statement
- (A) Financial planning helps businesses predict future scenarios.
- (B) It reduces financial uncertainties and business shocks.
- (C) It links investment and financing decisions for long-term stability.
- (D) The claim that financial planning increases waste and inefficiency is incorrect.
Conclusion: The correct answer is (mathbf{(D)}), as financial planning enhances efficiency rather than increasing waste.
Financial planning ensures the effective allocation of resources and minimizes risks associated with uncertainties.
Step 2: Identifying the Incorrect Statement
- (A) Financial planning helps businesses predict future scenarios.
- (B) It reduces financial uncertainties and business shocks.
- (C) It links investment and financing decisions for long-term stability.
- (D) The claim that financial planning increases waste and inefficiency is incorrect.
Conclusion: The correct answer is (mathbf{(D)}), as financial planning enhances efficiency rather than increasing waste.
Was this answer helpful?
0
0
Top CBSE CLASS XII Business Studies Questions
What is the Planning Process?
- ................ is one of the most important attitudes of an entrepreneur, which is defined as the ability to continue to do something, even when it is difficult.
(A) Decisiveness
(B) Interpersonal skills
(C) Perseverance
(D) Taking initiative - Mention any four most common environmental barriers which an entrepreneur may face while running his/her venture.
- ____is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.
‘Vishesh Constructions’, a construction company, decided to strictly implement ‘No Helmet, No Entry’ and put the following sign at their construction sites :
Identify the type of plan indicated by the above sign :
View More Questions
Top CBSE CLASS XII Objectives of Management Questions
- 'Bonfast Cement Ltd.' supports seven villages with housing facilities, schools, safe drinking water, health, and hygiene. The company sends its employees to visit a nearby village every 15 days to provide support and to see whether the facilities provided are being implemented on the ground. The objective which 'Bonfast Cement Ltd.' is trying to achieve is:
- Match the Levels of Management given in Column I with the functions performed at each level given in Column II:
- State any four functions performed by consumer organizations and non-governmental organizations (NGOs) for protecting and promoting the interest of consumers.
Top CBSE CLASS XII Questions
- 2, b, c are in A.P. and the range of determinant $\begin{vmatrix}1&1&1\\ 2&b&c\\ 4&b^{2}&c^{2}\end{vmatrix}$ is [2, 16]. Then find range of c is
- A boy of mass 50 kg is standing at one end of a, boat of length 9 m and mass 400 kg. He runs to the other, end. The distance through which the centre of mass of the boat boy system moves is
- A capillary tube of radius r is dipped inside a large vessel of water. The mass of water raised above water level is M. If the radius of capillary is doubled, the mass of water inside capillary will be
- A circular disc is rotating about its own axis. An external opposing torque 0.02 Nm is applied on the disc by which it comes rest in 5 seconds. The initial angular momentum of disc is
- A circular disc is rotating about its own axis at uniform angular velocity \(\omega.\) The disc is subjected to uniform angular retardation by which its angular velocity is decreased to \(\frac {\omega}{2}\) during 120 rotations. The number of rotations further made by it before coming to rest is
View More Questions