Advertisements
Advertisements
प्रश्न
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?
उत्तर
- Machinery is fixed asset since it is used in business for longer time period.
- The capital used for purchase of machinery is fixed capital.
- Yes, size of a business determines the fixed capital requirement. When business operations are carried out on a large scale, it will have higher fixed capital requirement as most of the production processes are based on automatic machines and equipment.
APPEARS IN
संबंधित प्रश्न
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.
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.
Answer in one sentence.
What is production cycle?
Correct the underlined word and rewrite the following sentence.
Finance is needed to pay dividend to debenture holders.
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.
Equity shares carry dividend at fixed rate.
What is corporate finance and state two decisions which are the basis of corporate finance?
Discuss the importance of corporate finance.
Arrange the terms in proper order:
- Investment decision
- Establishment of a firm
- Financing decision
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 possible.
Finance is the management of ______ affairs of the company.
Business firm gives green signal to the project only when it is profitable.
Finance is the management of ______ affairs of the company.
