Financial Management (CBSE Class-12 Business-Studies): Questions 20 - 28 of 37

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Question number: 20

» Financial Management » Capital Structure

Essay Question▾

Describe in Detail

The board of Directors has asked you to design the capital structure of the company. Explain any six factors that you would consider while doing so.

Explanation

To design the capital structure of the company six factors to be considered are:

  1. Interest coverage ration (ICR)
  2. Cash Flow Position.
  3. Debt Service coverage ratio (DSCR)
  4. Tax rate.
  5. Cost of debt
  6. Return on investment (ROI)

Question number: 21

» Financial Management » Concept and Objectives of Financial Management

One Liner Question▾

Write in Brief

What is Business Finance?

Question number: 22

» Financial Management » Fixed and Working Capital

One Liner Question▾

Write in Brief

Name the type of investment decision which relates to short-term and affects day to day operations of a company.

Question number: 23

» Financial Management » Concept and Objectives of Financial Management

One Liner Question▾

Write in Brief

Enumerate two objectives of financial management?

Question number: 24

» Financial Management » Concept and Objectives of Financial Management

Appeared in Year: 2006

Short Answer Question▾

Write in Short

Hina and Harish are typists in a company having same educational qualifications. Hina is getting Rs. 3, 000 per month and Harish Rs. 4, 000 per month as salary for the same working hours. Which principle of management is violated in this case? Name and explain the principle.

Question number: 25

» Financial Management » Capital Structure

Appeared in Year: 2005

Essay Question▾

Describe in Detail

Explain any five factors which affect the capital structure of a business Enterprise.

Explanation

Capital structure represents the proportion of debt and equity in the capital structure of business

  1. Size of firm: large firms have low bankruptcy ratio and high profitability so debt ratio is higher in this firm compare to the smaller firm.
  2. Business risk: depending on the risk level capital structure of… (197 more words) …

Question number: 26

» Financial Management » Capital Structure

Appeared in Year: 2006

Short Answer Question▾

Write in Short

What is meant by ‘Capital Structure’ in financial management?

Question number: 27

» Financial Management » Financial Planning

Appeared in Year: 2006

Essay Question▾

Describe in Detail

’ Planning and controlling are inter-dependent and interlinked activities. Explain.

Explanation

Planning and control, both are interdependent and interlinked activity. It is the planning, which decides the controlling process on the one hand. On the other hand, it is controlling which provides sound basis for planning.

In this way, planning and controlling both of them are interdependent.

Planning is an activity… (111 more words) …

Question number: 28

» Financial Management » Capital Structure

Appeared in Year: 2006

Short Answer Question▾

Write in Short

Explain any three causes of over-capitalization.

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