Business studies cbse 2017 class 12 Justify the financial concept discussed in the above para Also state the objectives to be achieved by the use of financial concept so identified class 12

The Eduladder is a community of students, teachers, and programmers just interested to make you pass any exams. So we solve previous year question papers for you.
See Our team
Wondering how we keep quality?
Got unsolved questions?

Ask Questions

Business-studies-CBSE-class-12-2017-->View question

Business studies cbse 2017 class 12. Justify the financial concept discussed in the above para. Also state the objectives to be achieved by the use of financial concept, so identified. class 12

Somnath Ltd. is engaged in the business of export of garments. In the past, the performance of the company had been up-to the expectations. In line with the latest technology, the company decided to upgrade its machinery. For this, the Finance Manager. Dalmia estimated the amount of funds required and the timings. This will help the company in linking the investment and the financing decisions on a continuous basis. Dalmia therefore, began with the preparation of a sales forecast for the next four years. He also collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources of the business. For the remaining funds he is trying to find out alternative sources from outside. Justify the financial concept discussed in the above para. Also state the objectives to be achieved by the use of financial concept, so identified.


Asked by:milan-ransingh

Taged users:


Likes:
Be first to like this question

Dislikes:
Be first to dislike this question
Talk about this  Delete  Like  Dislike

Answers
Answer:
Financial planning has been discussed in the paragraph. Financial planning involves identifying the sources from where the funds can be obtained and ensuring that the required funds are available to the firm as and when needed. In this way, financial planning ensures that the various functions of the organisation are carried out smoothly.
Two main objectives of financial planning: 
i. Identifying the sources from where the funds can be raised and ensuring that the required funds are available to the firm as and when needed. For this, under financial planning, an estimation is made regarding the amount of funds which would be required for various business operations. In addition, an estimation is made regarding the time at which the funds would be needed.
ii. To ensure that there is proper utilisation of funds in the sense that there is neither surplus nor inadequate funding by the firm. In other words, it ensures that situations of both excess or shortage of funds are avoided. This is because while inadequate funds obstruct operations of the firm, excess funding leads to wasteful expenditure by the firm. Thus, proper financial planning ensures optimal utilisation of funds by the firm.

Answerd By:Aparna-Dasgupta

Likes:
Be first to like this answer

Dislikes:
Be first to dislike this answer
Talk about this  Delete  Like  Dislike

Can you help us to add better answer here? Please see this



You may also like our videos

Below are some of the videos from our collection. We saw that students not only needed content but also videos. So, we decided to build a video platform for you also an algorithm which shows best videos suites to you related to the content you are browsing check out some videos which suit best for you.

Lets together make the web is a better place

We made eduladder by keeping the ideology of building a supermarket of all the educational material available under one roof. We are doing it with the help of individual contributors like you, interns and employees. So the resources you are looking for can be easily available and accessible also with the freedom of remix reuse and reshare our content under the terms of creative commons license with attribution required close.

You can also contribute to our vision of "Helping student to pass any exams" with these.
Answer a question: You can answer the questions not yet answered in eduladder.
Career: Work or do your internship with us.
Create a video: You can teach anything and everything each video should be less than five minutes should cover the idea less than five min.
Donate: Ad revenue alone is not able to take care of our server cost consider donating at least a dollar Click here to donate.

If you want the help of doing any of these never hesitate to drop an email to me arunwebber[at]gmail[dot]com, Or you can ping us on WhatsApp ph: 8147433408


Not the answer you're looking for? Browse other questions from this Question paper or ask your own question.

Want to exlplore yourself?