Long term financial planning focuses on which kind of programmes?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Capital Expenditure programmes
Option (1) Budget plans — Incorrect. A budget is a detailed plan for one year or less. It is the short-term side of financial planning.
Option (2) Capital Expenditure programmes — Correct. Financial planning estimates how much money the business will need and where it will come from. Its long-term part looks at growth and investment over three to five years, so it focuses on capital expenditure: money to be spent on fixed assets such as plant and machinery.
Option (3) Six months investment programmes — Incorrect. Six months is a short period, so this belongs to short-term planning.
Option (4) Dividend payout plan in the next quarter — Incorrect. A plan for the next three months is short-term, and paying dividends is a separate financial decision.
NCERT (2026-27 Edition): “Financial Planning … Financial planning includes both short-term as well as long-term planning. Long-term planning relates to long term growth and investment. It focuses on capital expenditure programmes. Short-term planning covers short-term financial plan called budget.” |
Note: The same/similar question has been asked in different years by NTA as per the details given below:
| 2026 | 2025 | 2024 | 2023 | 2022 |
| 24-05 S2 24-05 S1 | – | – | – | – |