Match List-I (importance of financial planning) with List-II (what ha…

Match List-I (importance of financial planning) with List-II (what happens in a firm):

List-I	List-II
(A) Co-ordinating various business functions	(I) The results of each division are compared quickly against the detailed objectives set for it.
(B) Reducing waste and duplication of efforts	(II) The firm is better prepared, so sudden changes in the market do not catch it unawares.
(C) Easier evaluation of actual performance	(III) The sales and production departments plan their work by the same clear policies and procedures.
(D) Avoiding business shocks and surprises	(IV) Detailed plans of action make sure that two departments do not do the same work twice.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

List-I	List-II	Reason
(A) Co-ordinating various business functions	(III) The sales and production departments plan their work by the same clear policies and procedures.	Financial planning co-ordinates functions such as sales and production by giving clear policies and procedures.
(B) Reducing waste and duplication of efforts	(IV) Detailed plans of action make sure that two departments do not do the same work twice.	Detailed plans of action cut waste and duplication. Two departments not doing the same work is avoiding duplication.
(C) Easier evaluation of actual performance	(I) The results of each division are compared quickly against the detailed objectives set for it.	Financial planning spells out detailed objectives for each business segment, so results can be checked against them easily.
(D) Avoiding business shocks and surprises	(II) The firm is better prepared, so sudden changes in the market do not catch it unawares.	It helps the firm prepare for the future, so market changes do not take it by surprise.

NCERT (2026-27 Edition): “Importance … (ii) It helps in avoiding business shocks and surprises and helps the company in preparing for the future.
(iii) If helps in co-ordinating various business functions, e.g., sales and production functions, by providing clear policies and procedures.
(iv) Detailed plans of action prepared under financial planning reduce waste, duplication of efforts, and gaps in planning.
(v) It tries to link the present with the future.
(vi) It provides a link between investment and financing decisions on a continuous basis.
(vii) By spelling out detailed objectives for various business segments, it makes the evaluation of actual performance easier.”

Match List-I (importance of financial planning) with List-II (what happens in a firm):

List-I	List-II
(A) Co-ordinating various business functions	(I) The results of each division are compared quickly against the detailed objectives set for it.
(B) Reducing waste and duplication of efforts	(II) The firm is better prepared, so sudden changes in the market do not catch it unawares.
(C) Easier evaluation of actual performance	(III) The sales and production departments plan their work by the same clear policies and procedures.
(D) Avoiding business shocks and surprises	(IV) Detailed plans of action make sure that two departments do not do the same work twice.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

List-I	List-II	Reason
(A) Co-ordinating various business functions	(III) The sales and production departments plan their work by the same clear policies and procedures.	Financial planning co-ordinates functions such as sales and production by giving clear policies and procedures.
(B) Reducing waste and duplication of efforts	(IV) Detailed plans of action make sure that two departments do not do the same work twice.	Detailed plans of action cut waste and duplication. Two departments not doing the same work is avoiding duplication.
(C) Easier evaluation of actual performance	(I) The results of each division are compared quickly against the detailed objectives set for it.	Financial planning spells out detailed objectives for each business segment, so results can be checked against them easily.
(D) Avoiding business shocks and surprises	(II) The firm is better prepared, so sudden changes in the market do not catch it unawares.	It helps the firm prepare for the future, so market changes do not take it by surprise.