Financial Management-Financial Decisions (CBSE Class-12 Business-Studies): Questions 1 - 8 of 9

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 442 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.

Rs. 700.00 or

Question number: 1

» Financial Management » Financial Decisions

Essay Question▾

Describe in Detail

The directors of a company have decided to expand their business activities by increasing the stock of raw materials and finished goods at an estimated cost of Rs. 50 lakhs, Describe the various ways open to the company to raise necessary finance for the purpose.

Explanation

The company can raise necessary finance for the purpose of expansion through the following function.

  1. Issue of shares
  2. Retained earnings.
  3. Loans from banks and financial institutions.
  4. Issue of debentures

Question number: 2

» Financial Management » Financial Decisions

Essay Question▾

Describe in Detail

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

Explanation

A manager take three following major decisions: -

  1. Dividend Decision.
  2. Financing Decision.
  3. Investment Decision.

Question number: 3

» 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: 4

» 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: 5

» 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: 6

» 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: 7

» Financial Management » Financial Decisions

Appeared in Year: 2010

Essay Question▾

Describe in Detail

What is meant by financing decision? State any four factors affecting the financing decision.

Explanation

Financing decision identify source of funds. Two main funds (1) shareholders’ funds and (2) borrowed funds.

Its factors are given below: -

(1) Risk involved: - All sources of funds are associated with degree of risk. Risk of payment that must be analyzed before debt. Sources of funds that include… (78 more words) …

Question number: 8

» Financial Management » Financial Decisions

Appeared in Year: 2010

Short Answer Question▾

Write in Short

Name the financial decision which helps a business man in opening a new branch of its business.

Sign In