FINANCIAL MANAGEMENT

Finance functions are

• Planning for funds
• Raising of funds
• Allocation of Resources
• All of the above

Which financial decision help a businessman in opening a new branch of its business. 

• Financing decision
• Dividend decision
• Investment decision
• None of the above

Which component of capital structure determines the overall financial risk? 

• Equity 
• Debt
• Both Equity and Debt
• Retained Earnings

The cheapest source of finance is

• Equity Shares
• Preference Shares
• Retained Earnings
• Debentures

A decision to acquire a new and modern plant to upgrade an old one is

• Investments decision
• Financing decision
• Dividend Decision
• Working Capital decision

Companies with higher growth potential are likely to
 

• Pay lower dividend
• Pay higher dividend
• Dividend are not affected by growth consideration 
• None of the above

Financial leverage is called favourable if 

•  ROI is lower than cost of debt 
• ROI is higher than cost of debt 
• Debt is nearly available 
• If the degree of financial leverage is low

Other things remaining the same, an increase in the tax rate on corporate profit will 

• Make debt relatively cheaper
• Make debt relatively costlier
• No impact on cost of debt
• We can't say

Net Woking capital refers to

• Total current Assets 
• Current Asset + Current Liabilities
• Current Assets - Current Liabilities
• Current Liabilities - Current Assets

Current Assets of business firm should be financed through : 

• Current liability only 
• Fixed Liability only
• Partly from both; current liability and fixed Liability
• None of the above