Assertion (A): Financial planning means estimating the requirements of a business and determining source of funds. Reason (R): Capital Structure refers to the mix between owners and borrowed funds.

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Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A). Explanation: • Assertion (A) is true: Financial planning = estimating financial needs + choosing sources of funds. • Reason (R) is also true: Capital structure = mix of owned and borrowed funds. But Reason (R) doesn’t explain Assertion (A). They are related, but not directly connected.

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