GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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One-sided approach
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Ignores allocation of resources
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More emphasis on long term problems
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All of the above
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Detailed explanation-1: -This approach is confirmed to „procurement of funds‟ only. It fails to consider an important aspects i.e. allocation of funds. It deals with only outside I.e. investors, investment bankers. The internal decision making is completely ignored in this approach.
Detailed explanation-2: -Traditional approach. • According to this approach, the scope of the finance. function is restricted to “procurement of funds by. corporate enterprise to meet their financial needs. The term ‘procurement’ refers to raising of funds.
Detailed explanation-3: -Uncertainty About the Future. Rigidity. Inaccuracy in the Data on Which Decisions Are Based. Standardization and Determination of Criteria. More Emphasis Are Placed on Fund Raising. Rapid Shifts in the Environment and in Public Policy. Unavailability of Required Information. More items
Detailed explanation-4: -Capital budgeting. Employing funds in different assets is integral to any organisation. Capital structure. Sourcing funds to ensure smooth functioning is the quintessential decision organisations need to make. Dividend decision. Working capital management decision. 13-Dec-2022