Financial Management (CBSE Class-12 Business-Studies): Questions 10 - 19 of 37

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Question number: 10

» Financial Management » Fixed and Working Capital

Essay Question▾

Describe in Detail

What do you call the capital needed for day to day operations? Explain any 5 factors affecting such capital needs.

Explanation

Capital needed for day to day operations is called working capital.

5 factors affecting capital needs:

  1. Production cycle
  2. Scale of operations
  3. Nature of business
  4. Credit allowed
  5. Seasonal Factors

Question number: 11

» Financial Management » Financial Planning

Short Answer Question▾

Write in Short

Which process prepares a blue print of an organisation’s future preparations relating to finance? Give any two reasons why this process is needed?

Question number: 12

» Financial Management » Financial Decisions

Short Answer Question▾

Write in Short

A capital budgeting decision is capable of changing the financial fortune of a business. Do you agree? Why or why not?

Question number: 13

» Financial Management » Financial Decisions

Essay Question▾

Describe in Detail

Are the share holders of a company likely to gain with a debt component in the capital employed? Explain with the help of an example?

Explanation

The shareholders of a company are very likely to gain with debt component in the capital employed by way of trading on equity as it increases the earning per share (EPS) of the shareholders.

Trade on equity:

  • Trading on equity occurs when a corporation uses bonds, other debt, and preferred… (90 more words) …

Question number: 14

» Financial Management » Concept and Objectives of Financial Management

One Liner Question▾

Write in Brief

When is financial leverage considered favorable?

Question number: 15

» Financial Management » Financial Planning

One Liner Question▾

Write in Brief

Name any 2 sources of long term fund?

Question number: 16

» Financial Management » Financial Decisions

One Liner Question▾

Write in Brief

“A decision to acquire a new and modern plant to upgrade an old one”. Identify the aspect of financial decision.

Question number: 17

» Financial Management » Fixed and Working Capital

Short Answer Question▾

Write in Short

What is meant by ‘Fixed capital’? Describe any four factors which affect the fixed capital requirements of a company.

Question number: 18

» Financial Management » Financial Decisions

Short Answer Question▾

Write in Short

Every manager has to take three major decisions while performing the finance function. Explain them.

Question number: 19

» Financial Management » Fixed and Working Capital

One Liner Question▾

Write in Brief

What do you mean by Floatation cost?

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