Practicing Success
Read the following case study and answer question. Aninjey is a CEO of Alfa Ltd. He is running a shoe business where his company is manufacturing canvas shoes, made up of breathable t-shirt fabric. His business is having a good liquidity position. He has already issued 200 equity shares earlier and has a company policy of paying regular dividends to its shareholders. He wants to expand his business and for that he required "100 crores. He asked his Finance Manager to prepare a financial blueprint Of the same in order 10 have the right debt-equity ratio, so that a right financial balance can be maintained. |
"Finance Manager is asked to prepare a financial blueprint." Identify the financial concept discussed above. |
Dividend decision Financing decision Investment decision Financial Planning |
Financial Planning |
The correct answer is option (4) : Financial Planning The term 'financial planning' refers to assessment of financial requirements and arranging the sources of capital. The finance manager gets entire information about his firm;s activities and on that basis, he prepares a financial plan The financial plan so prepared becomes crucial with respect decision making. |