CBSE Class 12 Business Studies sample paper 2026-27: question 15
From the official CBSE sample question paper for 2026-27, section A, question 15, for 1 mark. Try it first; the hints and our step-by-step solution are below.
Q15 · 1 mark · MCQCompetency-basedFinancial Management
Astrio Ltd. is a fast-growing company engaged in manufacturing consumer goods. The management noticed that despite good demand for its products, the company often faced delays in certain activities, while at other times money remained unused for long periods. To address this issue, the finance department decided to prepare a comprehensive plan before undertaking future activities. The company carefully assessed its upcoming business requirements and tried to determine how much money would be needed for different activities and at what stage these requirements would arise. At the same time, the management examined various ways through which funds could be arranged so that financial requirements could be met without disruption.
Identify the concept discussed in the above lines.
- (A)Capital structure
- (B)Financial control
- (C)Investment
- (D)Financial planning
Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.
Hints
Open one hint at a time and try again before the next.
Hint 1
What is the aim: avoiding shortage and idle funds?
Hint 2
Financial planning answers "how much" and "when".
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.
The firm estimated how much money would be needed, when it would be needed and from which sources it could be raised.
- 1 mark
Estimating fund requirements and deciding their sources in advance is financial planning. Option (D).
Answer: (D) Financial planning
Where the marks are
- Estimating amount and timing of funds and their sources (1 mark)
Revise the chapter
- Chapter: Financial Management (notes, formulas, where marks are lost and every past question)
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