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Question
Company has to pay ______ to government.
Options
taxes
dividend
interest
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Solution
Company has to pay taxes to government.
Explanation:
Company has to pay taxes to Government such as Income Tax, Goods and Service Tax (GST) and fees to Registrar of Companies on various occasions. Finance is needed for paying these taxes and fees.
RELATED QUESTIONS
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 |
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.
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.
Explain the following term/concept.
Financing decision
Explain the following term/concept.
Investment decision
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?
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
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 | ||
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.
