Chapter 10
Financial Management and Planning
Review Exercise
1. Indicate if the following statements are ‘True’ or ‘False’.
(i) Budget is the first step in money management. (True/False)
Answer:
(ii) Money serves as a medium of exchange of commodities. (True/False)
Answer:
(iii) Profits from business and gifts are a form of income. (True/False)
Answer:
(iv) One should first estimate the cost and then list the commodities and services needed while making the budget. (True/False)
Answer:
(v) Savings in physical assets are productive in economic terms. (True/False)
Answer:
(vi) The trend in business cycle is an important consideration under the principal of safety. (True/False)
Answer:
(vii) The time period may be ignored while considering and deciding on an investment. (True/False)
Answer:
(viii) The 4 C’s of credit are character, capacity, capital and collateral (True/False)
Answer:
(ix) Nature of enterprise is not an important safety consideration. (True/False)
Answer:
Review Questions
(i) What do you understand by ‘management of finances’?
Answer:
(ii) Discuss the different types of income.
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(iii) Discuss the steps in making a budget.
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(iv) What are the controls that can be exercised in money management?
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(v) Discuss the principles underlying sound investments.
Answer:
Practical 16
Financial Management and Planning
Plan a budget for any festival celebrated in your school. One example under each heading is given.
No. of students: 30
No. of teachers: 5
