Question

Financial planning arrives at:
a. minimising the external borrowing by resorting to equity issues
b. entering that the firm always have significantly more fund than required so that there is no paucity of funds
c. ensuring that the firm faces neither a shortage nor a glut of unusable funds
d. doing only what is possible with the funds that the firms has at its disposal

Answer 1

Answer:

Financial planning arrives at : ensuring that the firm faces neither a shortage nor a glut of unusable funds  

Among the given options option (b) ensuring that the firm faces neither a shortage nor a glut of unusable funds is the correct answer.

Explanation:

Financial planning aims at smooth operations by forecasting activities and fund requirement on one hand and analysing the sources of funds generation on the other.

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Here are more questions of the same chapter :  

Higher working capital usually results in:

a. higher current ratio, higher risk and higher profits  

b. lower current ratio, higher risk and profits  

c. higher equity, lower risk and lower profits

d. lower equity, lower risk and higher profits  

https://brainly.in/question/9392242

 

Current assets are those assets which get converted into cash:  

a. within six months

b. within one year  

c. between one and three years  

d. between three and five years  

https://brainly.in/question/9397321

Answer 2

Answer:

Financial planning aims at ensuring that the firm faces neither a shortage nor a glut of unusable funds. If there is shortage of funds then the firm will not be able to carry out its planned activities and commitment. On the other hand if there is excess funds available then it adds to cost of business which encourages waste of funds. Thus, financial planning focuses on ensuring the availability of just enough funds at right time.