Question

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 Alternatives:

Options

• Both Assertion (A) is false and Reason (R) are true.

• Both Assertion (A) and Reason (R) are false.

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

• Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion.

Answer 1

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