Home › UP Board Class 12 › businessstudies › Financial Management › Sound financial planning aims to ensure that the…
Sound financial planning aims to ensure that the firm has:
Ano shareholders at all
Bthe maximum possible number of loans
Cneither a shortage nor an idle surplus of funds
Donly fixed assets and no cash
Answer & Solution
Correct answer: C. neither a shortage nor an idle surplus of funds
Good financial planning avoids both shortage and idle surplus of funds.
Related questions
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:The decision about how much profit to distribute and how much to retain is the: