It is a process of estimating the fund requirement of a business and specifying the sources of funds.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Financial Planning
Option (1) Financial management — Incorrect. This is the whole task of planning, organising, directing and controlling the finance. It aims to increase the shareholders’ wealth. It is wider than estimating the funds needed.
Option (2) Financing decision — Incorrect. This decides from which sources, owned or borrowed, the funds are to be raised. It does not estimate the total need.
Option (3) Financial Planning — Correct. This is the blueprint of the future operations. It estimates how much fund is needed and from which sources, so that enough funds are available at the right time.
Option (4) Capital Budgeting — Incorrect. This is the decision to invest in long-term assets. It is not about estimating the fund requirement of the whole business.
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. …” |