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महाराष्ट्र राज्य शिक्षण मंडळएचएससी वाणिज्य (इंग्रजी माध्यम) इयत्ता १२ वी

Explain the following term/concept. Investment decision

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प्रश्न

Explain the following term/concept.

Investment decision

स्पष्ट करा
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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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Corporate Finance
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पाठ 1: Introduction To Corporate Finance - Exercises [पृष्ठ १३]

संबंधित प्रश्‍न

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.

When there is boom in economy, sales will ______


Complete the sentence.

During recession period sales will ______


Answer in one sentence.

Define corporate finance.


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.


Explain the following term/concept.

Financing decision


Study the following case/situation and express your opinion.

The management of 'Maharashtra State Road Transport Corporation', wants to determine the size of working capital.

  1. Being a public utility service provider, will it need less working capital or more?
  2. Being a public utility service provider, will it need more Fixed Capital?
  3. Give one example of public utility service that you come across on day-to-day basis.

Justify the following statement.

Finance Manager plays a vital role in Corporate Finance.


Business firm gives green signal to the project only when it is profitable.


Explain the following term/concept in detail:

Corporate Finance


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.


Finance is the management of ______ affairs of the company.


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