Corporate Finance

Study the following case/situation and express your opinion.

A company is planning to enhance it's production capacity and is evaluating the possibility of purchasing new machinery whose cost is 2 crore or has alternative of machinery available on lease basis.

1. What type of asset is machinery?
2. Capital used for purchase of machinery is fixed capital or working capital?
3. Does the size of a business determine the fixed capital requirement?

Answer the following questions.

Discuss the importance of corporate finance.

Match the pairs.

Write a word or a term or a phrase which can substitute the following statement.
The decision of finance manager which ensures that firm is well capitalised.

Complete the sentence.

During recession period sales will ______

Select the correct option from the bracket.

(To have right amount of capital, Deploy funds in systematic manner, Fixed capital, Working capital, Capital structure)

Study the following case/situation and express your opinion.

The management of 'Maharashtra State Road Transport Corporation', wants to determine the size of working capital.

1. Being a public utility service provider, will it need less working capital or more?
2. Being a public utility service provider, will it need more Fixed Capital?
3. Give one example of public utility service that you come across on day-to-day basis.

State whether the following statement is true or false.

Business firm gives green signal to the project only when it is profitable.