Financial Planning aims at enabling the company to tackle the __________ in respect of the availability and timing of the funds and helps in smooth functioning of an organisation.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Uncertainty
Option (1) Demand — Incorrect. Financial planning is about funds, not the demand for the firm’s products.
Option (2) Uncertainty — Correct. Financial planning estimates in advance how much money the business will need, when, and from where. So the firm is not caught short of funds and does not raise more than it needs. Nobody knows the future for sure. Financial planning prepares the firm for it.
Option (3) Supply — Incorrect. Supply of goods has nothing to do with the sentence.
Option (4) Certainty — Incorrect. Certainty needs no tackling. It is uncertainty that creates the problem.
NCERT (2026-27 Edition): “Importance Financial planning is an important part of overall planning of any business enterprise. It aims at enabling the company to tackle the uncertainty in respect of the availability and timing of the funds and helps in smooth functioning of an organisation. The importance of financial planning can be explained as follows: |