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Business Studies · 2023 · 4 marks
CBSE 2023 · Region 5 · Set 1 · Q29
Harish is working as a finance manager in 'Kozee Softwares Ltd.' He has been awarded 'Best employee of the year Award' because of his…
Harish is working as a finance manager in 'Kozee Softwares
Ltd.' He has been awarded 'Best employee of the year Award'
because of his foresightedness. He always aims at smooth
operations of all the financial activities by focusing on fund
requirements and their availability in the light of financial
decisions. He takes into consideration the growth, performance,
investments and requirement of funds for a given period so that
financial resources are not left idle and don't unnecessarily add
to the cost.
By doing all this Harish strives to achieve the two main
objectives of an important concept of financial management. Identify the concept and explain its two objectives.
Marking-scheme solution
The important concept of financial management discussed is
Financial Planning.
Two objectives are:
(i)
To ensure availability of funds whenever required:
§ This includes a proper estimation of the funds required for
different purposes such as for the purchase of long-term assets or
to meet day-to- day expenses of business etc.
§ To estimate the time at which these funds are to be made available
and to specify possible sources of these funds.
(ii)
To see that the firm does not raise resources unnecessarily:
Financial planning ensures that enough funds are available at right
time.
§ If adequate funds are not available the firm will not be able to
honour its commitments and carry out its plans.
§ On the other hand, if excess funds are available, it will
unnecessarily add to the cost.
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CBSE Class 12 Business Studies past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.