Preparation of a financial blueprint of an organisation’s future operations is known as _____.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Financial Planning
Option (1) Financial Market — Incorrect. It is a place where financial assets are traded. It is not the preparation of a plan.
Option (2) Financial Planning — Correct. Financial planning is the preparation of a financial blueprint of an organisation’s future operations, to make sure enough funds are available at the right time.
Option (3) Financial Resources — Incorrect. These are the funds the firm has. They are not the plan for using them.
Option (4) Financial Risk — Incorrect. It is the risk of default on fixed payments such as interest. It is not a plan.
NCERT (2026-27 Edition): “Financial Planning Financial planning is essentially the preparation of a financial blueprint of an organisation’s future operations. The objective of financial planning is to ensure that enough funds are available at right time. …” |