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प्रश्न
Explain the following term/concept.
Investment decision
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उत्तर
Once the business firm has gained access to capital, the finance manager has to take decisions regarding the use of the funds in a systematic manner so that it will bring a maximum return for its owners. For this, the firm has to take into consideration the cost of capital. Once they know the cost of capital, the firm can deploy or use the funds in such a way that returns are more than the cost of capital.
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संबंधित प्रश्न
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.
State whether the following statement is true or false.
Corporate finance brings co-ordination between various business activities.
Find the odd one.
Complete the sentence.
During recession period sales will ______
Correct the underlined word and rewrite the following sentence.
Finance is needed to pay dividend to debenture holders.
Correct the underlined word and rewrite the following sentence.
Equity shares carry dividend at fixed rate.
Explain the following term/concept.
Financing decision
What is corporate finance and state two decisions which are the basis of corporate finance?
Discuss the importance of corporate finance.
Business firm gives green signal to the project only when it is profitable.
Explain the following term/concept in detail:
Corporate Finance
Match the pairs:
| Group 'A' | Group 'B' | ||
| (a) | Capital budgeting | 1) | Problem faced in physical mode |
| (b) | Interest on registered debentures | 2) | Decided and declared by the Board of Directors |
| (c) | Bad delivery | 3) | Trading of financial securities |
| (d) | Final dividend | 4) | Trading of commodities |
| (e) | Financial market | 5) | Interest warrant |
| 6) | Investment decision | ||
| 7) | Problem faced in electronic mode | ||
| 8) | Financing decision | ||
| 9) | Interest coupons | ||
| 10) | Decided by the Board and declared by the members | ||
Select the correct option from the bracket and complete the table:
(Funds for long-term, Rights issue, 36 months, Deploy funds in systematic manner, Charge on tangible assets)
| Group 'A' | Group 'B' | ||
| (a) | Investment decision | (1) | ____________ |
| (b) | ____________ | (2) | Shares offered to existing equity shareholders |
| (c) | Secured deposits | (3) | ____________ |
| (d) | ____________ | (4) | Maximum period of deposits |
| (e) | Capital market | (5) | ____________ |
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.
Finance is the management of ______ affairs of the company.
