Question

Which of the following is not an objective of financial planning?

Options

• To ensure availability of funds whenever required.

• To choose the best investment and financing alternatives by focusing on their costs and benefits.

• To see that the firm does not raise resources unnecessarily.

• All are the objectives of financial planning.

Answer 1

To choose the best investment and financing alternatives by focusing on their costs and benefits.

Explanation - 

The primary goals of financial planning are to determine the amount of fixed and working capital required in a given period, to determine the amount to be raised from various sources using a prudent debt-equity mix, and to ensure that the required amount is raised on time and at the lowest possible cost.