Untitled Presentation

Multiple Select

Which of the following are considered components of capital structure?

• Equity share capital

• Preference share capital

• Retained earnings

• Overheads

Multiple Choice

Why is the significance of corporate finance crucial for the success of a business?

• It helps in marketing strategies

• It ensures efficient use and management of funds

• It increases the number of employees

• It focuses only on profit generation

Open Ended

Explain how corporate finance supports the smooth running and growth of a business firm.

Multiple Choice

Which of the following is NOT a factor affecting fixed capital requirement?

• Nature of business

• Population trend

• Overheads

• International conditions

Multiple Choice

What is the primary purpose of working capital in a business?

• To buy fixed assets

• To pay dividends

• To carry out day-to-day business activities

• To expand internationally

Open Ended

Explain how the nature and size of a business influence its working capital requirements.

Multiple Choice

Which of the following is NOT listed as an importance of corporate finance in the management of a business enterprise?

• Helps in decision making

• Helps in raising capital for a project

• Helps in marketing strategy development

• Helps in research and development

Open Ended

Reflecting on what you have learned about corporate finance, what do you think is the most important role of a finance manager in a corporation?

Multiple Choice

Which of the following statements correctly distinguishes between fixed capital and working capital?

• Fixed capital is invested in short term assets, while working capital is invested in fixed assets.

• Fixed capital is circulating capital, while working capital stays in the business almost permanently.

• Fixed capital funding can come from selling shares and debentures, while working capital can be funded with short term loans and deposits.

• Investment in working capital implies more risk than investment in fixed capital.