Traditional approach confines finance function only to _________ funds
A. raising
B. mobilizing
C. utilizing
D. financing
Answer: Option A
Solution (By Examveda Team)
The traditional approach to the finance function relates to the initial stages of its evolution during 1920s and 1930s. According to this approach, the scope, of finance function was confined to only procurement of funds needed by a business on most suitable terms.The utilisation of funds was considered beyond the purview of finance function. It was felt that decisions regarding the application of funds are taken somewhere else in the organisation. However, institutions and instruments for raising funds were considered to be a part of finance function.
This Question Belongs to Commerce >> Financial Management
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