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AP Intermediate 2nd Year Planning — practice questions

Explore 34 free Planning questions in AP Intermediate 2nd Year Business Studies. Open each question or exercise to read its content, reference answers and available explanation.

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Planning questions and exercises with answers

Showing questions 1–30 of 34.

The three broad financial decisions are the investment decision, the financing decision and the:Read the answer and worked solution →A long-term investment decision is also known as a:Read the answer and worked solution →Wealth maximisation is achieved by maximising the:Read the answer and worked solution →Short-term investment decisions about cash, inventory and receivables are also called:Read the answer and worked solution →Capital structure refers to the mix of:Read the answer and worked solution →Planning is best described as deciding in advance:Read the answer and worked solution →Planning seeks to bridge the gap between where we are and:Read the answer and worked solution →A firm sets goals so employees know what to do and work in one direction. This benefit is that planning:Read the answer and worked solution →By anticipating change and preparing responses, planning:Read the answer and worked solution →Planning gives the goals against which actual performance is measured, so it is a prerequisite for:Read the answer and worked solution →Because all other managerial functions are performed within the framework of plans, planning is called the:Read the answer and worked solution →Top management plans for the whole firm while supervisors plan day to day. This shows planning is:Read the answer and worked solution →Planning looks ahead and is based on forecasting, which makes it:Read the answer and worked solution →If only one course of action existed, there would be no need to plan because planning involves:Read the answer and worked solution →Planning requires foresight, imagination and sound judgement, so it is called a:Read the answer and worked solution →A well-defined plan that managers cannot change when conditions shift shows that planning leads to:Read the answer and worked solution →Because top management makes the plans and others merely implement them, planning may:Read the answer and worked solution →Boardroom meetings, expert consultations and preliminary investigations mean planning:Read the answer and worked solution →A plan that worked before may not work again, which shows planning:Read the answer and worked solution →The first step in the planning process is:Read the answer and worked solution →The assumptions about the future on which plans are built are called:Read the answer and worked solution →A plan developed for a one-time event or project, not likely to be repeated, is a:Read the answer and worked solution →Policies, procedures, methods and rules are examples of:Read the answer and worked solution →A comprehensive plan that sets long-term objectives, adopts a course of action and allocates resources is a:Read the answer and worked solution →A general statement that guides thinking, such as a recruitment or pricing policy, is a:Read the answer and worked solution →Specific statements that allow no flexibility or discretion, such as reporting for work on time, are:Read the answer and worked solution →A statement of expected results expressed in numerical terms is a:Read the answer and worked solution →Catch the benefits of planningRead the answer and worked solution →Pop the standing plansRead the answer and worked solution →Run the planning stepsRead the answer and worked solution →

Worked practice questions

The three broad financial decisions are the investment decision, the financing decision and the:

  1. marketing decision
  2. dividend decision
  3. production decision
  4. staffing decision
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Correct answer: B. dividend decision

Finance function rests on three decisions: investment, financing and dividend.

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A long-term investment decision is also known as a:

  1. capital budgeting decision
  2. financing decision
  3. working capital decision
  4. dividend decision
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Correct answer: A. capital budgeting decision

A long-term investment decision is a capital budgeting decision, committing funds on a long-term basis.

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Wealth maximisation is achieved by maximising the:

  1. number of shares issued
  2. book value of its assets
  3. market price of the company's equity shares
  4. sales turnover
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Correct answer: C. market price of the company's equity shares

Shareholder wealth is reflected in the market price of equity shares raising it is the goal.

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More Business Studies topics

Principles & Functions of ManagementFinancial & Marketing ManagementControllingDirectingFinancial MarketsNature and Significance of ManagementStaffingBusiness Environment