Balbharati solutions for Secretarial Practice [English] 12 Standard HSC Maharashtra State Board chapter 1 - Introduction To Corporate Finance [Latest edition]

Select the correct answer from the options given below and rewrite the statement.

______ is related to money and money management.

Finance is the management of ______ affairs of the company.

Corporation finance deals with the acquisition and use of ______ by business corporation.

Company has to pay ______ to government.

Select the correct answer from the options given below and rewrite the statement.

______ refers to any kind of fixed asset.

Select the correct answer from the options given below and rewrite the statement.

______ refers to the excess of current assets over current liabilities.

Select the correct answer from the options given below and rewrite the statement.

Manufacturing industries have to invest ______ amount of funds to acquire fixed assets.

Select the correct answer from the options given below and rewrite the statement.

When the population is increasing at high rate, certain manufacturers find this as an opportunity to ______ business.

Select the correct answer from the options given below and rewrite the statement.

The sum of all ______ is gross working capital.

Select the correct answer from the options given below and rewrite the statement.

______ means mix up of various sources of funds in desired proportion.

Match the pairs.

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 which ensures that firm is well capitalised.

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

Write a word or a term or a phrase which can substitute the following statement.
Capital needed to acquire fixed assets which are used for longer period of time.

Write a word or a term or a phrase which can substitute the following statement.
The sum of current assets.

Write a word or a term or a phrase which can substitute the following statement.
The excess of current assets over current liabilities.

Write a word or a term or a phrase which can substitute the following statement.
The process of converting raw material into finished goods.

Write a word or a term or a phrase which can substitute the following statement.
The boom and recession cycle in the economy

Write a word or a term or a phrase which can substitute the following statement.
The ratio of different sources of funds in the total capital.

Write a word or a term or a phrase which can substitute the following statement.
The internal source of financing.

Finance is related to money and money management.

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

State whether the following statement is true or false.

Corporate finance brings co-ordination between various business activities.

Fixed capital is also referred as circulating capital. 

State whether the following statement is true or false.

Working capital stays in the business almost permanently.

State whether the following statement is true or false.

The business will require huge funds if assets are acquired on a lease basis.

State whether the following statement is true or false.

The business dealing in luxurious products will require huge amount of working capital.

State whether the following statement is true or false.

A firm with large scale operations will require more working capital.

Liberal credit policy creates a problem of bad debts.

State whether the following statement is true or false.

Financial institutions and banks cater to the working capital requirement of business.

Find the odd one.

Find the odd one.

Find the odd one.

Initial planning of capital requirement is made by______.

Complete the sentence.

When there is boom in economy, sales will ______

Complete the sentence.

The process of converting raw material into finished goods is called ______

Complete the sentence.

During recession period sales will ______

Select the correct option from the bracket.

(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 fixed capital?

Answer in one sentence.

Define working capital.

Answer in one sentence.

What is production cycle?

Answer in one sentence.

Define capital structure.

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.

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

Explain the following term/concept.

Investment decision

Explain the following term/concept.

Fixed capital

Explain the following term/concept.

Working capital

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.

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.

1. What type of asset is machinery?
2. Capital used for purchase of machinery is fixed capital or working capital?
3. Does the size of a business determine the fixed capital requirement?

Distinguish between Fixed capital and Working capital.

Answer in brief.

Define capital structure and state it’s components.

State any four factors affecting fixed capital requirement.

What is corporate finance and state two decisions which are the basis of corporate finance?

Justify the following statement.

The firm has multiple choices of sources of financing.

Justify the following statement.

There are various factors affecting the requirement of fixed capital.

Justify the following statement.

Fixed capital stays in the business almost permanently.

Justify the following statement.

Capital structure is composed of owned funds and borrowed funds.

Justify the following statement.

There are various factors affecting the requirement of working capital.

Discuss the importance of corporate finance.

Answer the following question.

Discuss the factors determining working capital requirement.