The main aim of financial planning is to:
Aborrow the maximum amount at all times
Bensure adequate funds are available while avoiding idle surplus finance
Cpay the maximum dividend every year
Dkeep the number of shareholders minimal
Answer & Solution
Correct answer: B. ensure adequate funds are available while avoiding idle surplus finance
Financial planning ensures enough funds are available when needed while avoiding costly idle surplus.
Related questions
Sound financial planning aims to ensure that the firm has:The cost incurred by a company to raise its funds is referred to as the:Other things being equal, a company that uses a higher proportion of debt faces higher:The primary objective of financial management is generally taken to be:The capital invested in long-term fixed assets such as plant and machinery is called:The capital required to finance day-to-day operations of a business is called:The use of fixed-cost debt funds to increase the return to equity shareholders is known asThe mix of debt and equity used by a company to finance its assets is called its: