Financial Management and Planning

R eview E xercise . Indicate if the following statements are ‘True’ or ‘False’. (i) Budget is the first step in money management. (True/False) (ii) Money serves as a medium of exchange of commodities.

(True/False) (iii) Profits from business and gifts are a form of income. (True/False) (iv) One should first estimate the cost and then list the commodities and services needed while making the budget. (True/False) (v) Savings in physical assets are productive in economic terms. (True/False) (vi) The trend in business cycle is an important consideration under the principal of safety.

(True/False) (vii) The time period may be ignored while considering and deciding on an investment. (True/False) (viii) The C’s of credit are character, capacity, capital and collateral (True/False) (ix) Nature of enterprise is not an important safety consideration. (True/False)