Arts (English Medium) कक्षा १२ - CBSE Question Bank Solutions

Explain any three points that highlight the importance of 'Coordination'.

State any three factors determining the choice of an appropriate capital structure of a company.

The activities whose outcome not only improves the job performance but also help individuals in the progress towards maturity and actualisation of their potential capacities is known as ______.

______ refers to the increase in profit earned by the equity shareholders due to the presence of fixed financial charges like interest.

Which of the following is not a factor affecting capital structure of a company?

The Board of directors of Medex Pharma Ltd. decided to issue debentures worth ₹ 40 lakhs in order to finance a major Research and Development project. This would increase the Debt Equity ratio from 1:1 to 2:1.However, at the same time it would increase the Earnings per share.

The reason that will justify the above situation is ______.

SEBI calls for information and issues a show cause notice to stock exchange and its officials seeking explanation and conducting audit and enquiry. Which function is SEBI performing?

STATEMENT I: Electronic holdings can be converted into physical certificates with the process of dematerialisation.

STATEMENT II: There is no danger of theft, loss or forgery of share certificates in dematerialisation.

Choose the correct option from the following:

Answer the following question:
The Return on Investment (ROI) of a company ranges between 10 - 12% for the past three years. To finance its future fixed capital needs, it has the following options for borrowing debt:
Option ‘A’: Rate of interest 9%
Option ‘B’: Rate of interest 13%

Which source of debt, ‘Option A’ or ‘Option B’, is better? Give reasons in support of your answer. Also, state the concept being used in taking the decision.

Answer the following question.
‘Moga Industries Ltd,’ approached a well-established university in the city of Madurai to recruit qualified personnel for various technical and professional jobs. They selected Tanya, Ritu, Garima, and Chetan for various Vacancies in the organisation.
After the selection and placement, 'Moga Industries Ltd,’ felt the need to increase the skills and abilities, and the development of a positive attitude of the employees to perform their specific jobs better. The company also realised that learning new skills would improve the job performance of the employees. Hence, the company decided to take action for the same.

1) Name the step of the staffing process regarding which the company decided to take action.
2) State the benefits of the action to ‘Moga Industries Ltd.'

Meca Ltd. a reputed automobile manufacturer needs Rupees ten crores as additional capital to expand its business. Atul Jalan, the CEO of the company wanted to raise funds through equity. On the other hand the Finance Manager, Nimi Sandev said that the public issue may be expensive on account of various mandatory and non-mandatory expenses. Therefore, it was decided to allow the securities to institutional investors. Name the method through which the company decided to raise additional capital.

Explain briefly any four factors that affect the working capital requirement of a company.

'Sarah Ltd.' is a company manufacturing cotton yarn. It has been consistently earning good profits for many years. This year too, it has been able to generate enough profits. There is the availability of enough cash in the company and good prospects for growth in future. It is a well-managed organisation and believes in quality, equal employment opportunities and good remuneration practices. It has many shareholders who prefer to receive a regular income from their investments. It has taken a loan of Rs 40 lakhs from IDBI and is bound by certain restrictions on the payment of dividend according to the terms of loan agreement. The above discussion about the company leads to various factors which decide how much of the profits should be retained and how much has to be distributed by the company. Quoting the lines from the above discussion identify and explain any four such factors.

Organising involves a series of steps in order to achieve the desired goals

Explain the following as factor affecting the requirements of fixed capital:

Scale of operations

Explain the following as factor affecting the requirements of fixed capital:

Choice of technique

Explain the following as factors affecting the requirements of fixed capital:

Technology upgradation

Explain the following as factors affecting the requirements of fixed capital:

Financing alternatives

Explain the following as factors affecting the requirements of working capital:

Nature of business

Explain the following as factors affecting the requirements of working capital:

Scale of operations