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Read the follow… (Class 12 Business Studies SQP 2024-25, Q3)

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Business StudiesCBSE Class 12 · Sample paper, session 2024-25 · 1 mark · Assertion-reason

CBSE Class 12 Business Studies sample paper 2024-25: question 3

From the official CBSE sample question paper for 2024-25, section A, question 3, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q3 · 1 mark · Assertion-reasonCompetency-basedFinancial Management

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below:
Assertion(A): Financial Planning aims at enabling the company to tackle the uncertainty in respect of the availability and timing of the funds.
Reason(R): Capital structure refers to the mix between owners' and borrowed funds

  1. (A)Both Assertion (A) is false and Reason (R) are true.
  2. (B)Both Assertion (A) and Reason (R) are false.
  3. (C)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion.
  4. (D)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

Open one hint at a time and try again before the next.

Hint 1

Check each statement on its own first.

Hint 2

Does the definition of capital structure explain financial planning?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. A is true: financial planning ensures funds are available at the right time and in the right amount. R is true: capital structure is the mix of owners' and borrowed funds.

  2. R defines capital structure, which does not explain the purpose of financial planning. Option (C).

    1 mark

Answer: (C) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion.

Where the marks are

  • Both true, unrelated (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Financial Management, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2024-25: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.