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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.
State whether the following statement is true or false.
Corporate finance brings co-ordination between various business activities.
Complete the sentence.
When there is boom in economy, sales will ______
Answer in one sentence.
What is production cycle?
Correct the underlined word and rewrite the following sentence.
When there is recession in economy sales will increase.
Correct the underlined word and rewrite the following sentence.
Share is an acknowledgment of loan raised by company.
Correct the underlined word and rewrite the following sentence.
Equity shares carry dividend at fixed rate.
Answer in brief.
Define capital structure and state it’s components.
Arrange the terms in proper order:
- Investment decision
- Establishment of a firm
- Financing decision
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) | ____________ |
Match the pairs:
| Group ‘A’ | Group ‘B’ | ||
| (a) | Capital budgeting | (1) | Unsecured Debenture |
| (b) | Regret Letter | (2) | 1956 |
| (c) | Board of Directors | (3) | Investment decision |
| (d) | Depository Act | (4) | Allotment of shares |
| (e) | Final Dividend | (5) | Decided and declared by Board of Directors |
| (6) | Financing decision | ||
| (7) | Decided by Board and declared by members | ||
| (8) | 1996 | ||
| (9) | Power to issue debentures | ||
| (10) | Non-Allotment of shares |
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 profitable.
Liberal credit policy creates a problem of bad debts.
Business firm gives green signal to the project only when it is profitable.
