Corporate Finance

Introduction to Corporate Finance

QUIZZ TIME

Multiple Choice

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

• Capital structure

• Capital budgeting

• Capital goods

Multiple Choice

The sum of all ................. is gross working capital.

• expenses

• current assets

• current liabilities

Multiple Choice

A growing company needs funds _________ to support large scale operations.

• huge

• continuously

• short term

Multiple Choice

A business firm needs fund to ________ it’s working capital needs

• work out

• arrange

• finance

Multiple Choice

Industries providing goods and services which are in good demand, will require large amount of ________

• Working Capital

• Fixed Capital

• Floating Capital

Multiple Choice

Fixed capital is the capital which is used for buying _________.

• Capital Assets

• working Assets

• growth and expansion

Multiple Choice

__________ is also referred as circulating capital.

• Fixed Capital

• Working Capital

• Long Term Capital

Multiple Choice

________ shares carry dividend at fixed rate.

• Equity

• Shares with differential rights

• Preference

Multiple Choice

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

• True

• False

Multiple Choice

Cost of capital is minimum return expected by it’s ______

• holders

• investors

• business organisation

Multiple Choice

Capital market is a market for _________ instruments

• short term debt

• long term debt

• medium term

Multiple Choice

Once the business firm has gained access to capital, the finance manager has to take decision regarding the use of the funds in systematic manner so that it will bring maximum return for its _________

• lenders

• providers

• owners

Multiple Choice

Whenever a business firm wants to start a new venture, it needs to ________

• borrow funds

• raise capital

• issue funds

Multiple Choice

____________ require continuous financial support.

• financial planning

• Research & Development

• corporate finance

Multiple Choice

A smooth flow __________ of is needed so that salaries of employees are paid on time, loans are cleared on time, raw material is purchased whenever required, sales promotion of existing products is carried out smoothly and new products can be launched effectively

• financial planning

• long term funds

• corporate finance

Multiple Choice

What will suffer, if finance department does not provide adequate finance for the purchase of raw materials and meeting other day-to-day financial requirements for smooth running of production unit ?

• Finance planning

• Sales

• Production

Multiple Choice

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

• True

• False

Multiple Choice

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

• True

• False

Multiple Choice

___________ refers to assessment of financial requirement and arranging sources of capital

• Capital Assessment

• Financial Plan

• Capital Budgeting

Multiple Choice

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

• close

• expand

• contract

Multiple Choice

The process of converting raw material into finished goods.

• manufacturing

• service provision

• Corporate Finance

Multiple Choice

Company has to pay ................. to government.

• Dividend

• Taxes

• Interest

Multiple Choice

Find the odd one

• Land and Building,

• Plant and Machinery

• Cash

• Furniture & Fixture

Multiple Choice

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

• workable

• doable

• profitable

Multiple Choice

The term corporate finance also includes financial planning, study of capital market, money market and ____________.

• Lenders market

• share market

• Banks & Financial Institution

Multiple Choice

__________capital stays in the business almost permanently.

• working

• floating

• fixed

Multiple Choice

The business will require less funds, if assets are acquired on _______ basis

• working capital

• finance

• lease

Multiple Choice

Company needs ________ to manage risks.

• money management

• finance manager

• financial aid

Multiple Choice

Gerstenbergh prefers to call working capital as _______

• floating capital

• circulating capital

• net working capital

Multiple Choice

___________ firms are those which are concerned with buying and selling of goods, either as wholesaler or retailer, without altering the physical form of goods

• Service

• Merchandising

• Business

Multiple Choice

A firm stocking on heavy inventory calls for higher level for __________.

• working capital

• long term capital

• huge funds

Multiple Choice

— Working capital refers to a firm’s ____________ in current assets such as cash, account receivable and inventories.

• Financing

• investment

• capital

Fill in the Blanks

Preference shares carry

rate of return

Fill in the Blanks

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

Fill in the Blanks

Finance is the management of

affairs of the company.

Multiple Select

Match the pair

Corporate Finance

• Deals with acquisition and use of capital

• Financing decision

Fill in the Blanks

Give one word/term or phrase

The sum of current assets.

Fill in the Blanks

assets are not meant for resale

Fill in the Blanks

Trading business may not need huge investments in

assets.

Multiple Choice

___________means indirect cost or expenses required to run a business

• routine expenses

• investments

• Overheads

Fill in the Blanks

excess of current assets over current liabilities.

Fill in the Blanks

Management has to determine the size of

capital in the light of certain aspects of business firm and economic environment within which the firm operates.

Fill in the Blanks

The boom and recession cycle in the economy.

Multiple Select

Investment decision

• To have right amount of capital

• Deploy funds in systematic manner

Multiple Select

During recession the need for working capital

• Increases

• declines

Multiple Select

The volume of sales and size of working capital are ___________related with each other

• inversely

• propotionately

• Directly

• negatively

Multiple Choice

Reliance JIo, Airtel and other mobile network providers would require huge amount of _____________ capital

• working

• fixed

• operating

Fill in the Blanks

A contract by which one person grants possession of some of his property especially land, building or machinery to another for a certain period of time.

Fill in the Blanks

It is difficult to perform any function of business enterprise independently without

Fill in the Blanks

When a business entrepreneur conceives an idea of setting up a business enterprise, the

viability of the idea is investigated.