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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 pairs.
| Group ‘A’ |
Group 'B' |
|
a) Capital budgeting |
1) Sum of current assets |
|
b) Fixed capital |
2) Deals with acquisition and use of capital |
|
c) Working capital |
3) Fixed liabilities |
|
d) Capital structure |
4) Sum of current liabilities |
|
e) Corporate finance |
5) Fixed assets |
|
|
6) Investment decision |
|
7) Financing decision |
|
|
8) Deals with the acquisition and use of assets |
|
|
9) Mix-up of various sources of funds |
|
|
10) Product mix |
Write a word or a term or a phrase which can substitute the following statement.
A key determinant of success of any business function.
Write a word or a term or a phrase which can substitute the following statement.
The decision of finance manager to deploy the funds in systematic manner
Find the odd one.
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)
Answer in one sentence.
Define corporate finance.
Correct the underlined word and rewrite the following sentence.
Finance is needed to pay dividend to debenture holders.
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?
Answer in brief.
Define capital structure and state it’s components.
What is corporate finance and state two decisions which are the basis of corporate finance?
Discuss the importance of corporate finance.
Justify the following statement.
Finance Manager plays a vital role in Corporate Finance.
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.
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.
Finance is the management of ______ affairs of the company.
