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प्रश्न
Explain the following term/concept.
Financing decision
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उत्तर
- A business can raise money from the capital market to meet its financial needs. It has many options for sources of finance.
- Funds can be raised by issuing shares, debentures, etc., or by borrowing from banks and financial institutions. The finance manager must see that the company has enough capital.
APPEARS IN
संबंधित प्रश्न
Match the correct pairs:
| Group “A” | Group “B” | ||
| 1 | Financial planning | a. | Dividend |
| 2 | Public deposit | b. | Less applications than expected |
| 3 | Private placement | c | Owned capital |
| 4 | Secured debentures | d. | Advance programming of the financial plan |
| 5 | Return on share | e. | Bonus |
| f. | Issuing shares without inviting the public for subscription |
||
| g. | Maximum 7 years | ||
| h. | Security about repayment | ||
| i. | Maximum 36 months | ||
| j. | Management of business activities |
Write a word or a term or a phrase which can substitute the following statement.
A key determinant of success of any business function.
Business firm gives green signal to the project only when it is profitable.
Complete the sentence.
When there is boom in economy, sales will ______
Select the correct option from the bracket.
|
Group 'A' |
Group 'B' |
|
a) Financing decision |
1) __________________ |
|
b) __________________ |
2) Longer period of time. |
|
c) Investment decision |
3) __________________ |
|
d) __________________ |
4) Circulating capital |
|
e) Combination of various sources of funds |
5) __________________ |
(To have right amount of capital, Deploy funds in systematic manner, Fixed capital, Working capital, Capital structure)
Correct the underlined word and rewrite the following sentence.
Equity shares carry dividend at fixed rate.
Explain the following term/concept.
Investment decision
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.
- What type of asset is machinery?
- Capital used for purchase of machinery is fixed capital or working capital?
- Does the size of a business determine the fixed capital requirement?
Discuss the importance of corporate finance.
Finance is the management of ______ affairs of the company.
Arrange the terms in proper order:
- Investment decision
- Establishment of a firm
- Financing decision
Business firm gives green signal to the project only when it is profitable.
Business firm gives green signal to the project only when it is profitable.
Business firm gives green signal to the project only when it is possible.
Finance is the management of ______ affairs of the company.
Business firm gives green signal to the project only when it is profitable.
