Corporate Finance

Investment is the

• net additions made to the nation’s capital stocks

• person’s commitment to buy a flat or house

• employment of funds on assets to earn returns

• employment of funds on goods and services that are used in production process

Financial Management is mainly concerned with

• All aspects of acquiring and utilizing financial resources for firms activities

• Arrangement of funds

• Efficient Management of every business

• Profit Maximization

The primary goal of the financial management is

• To maximize the return

• To minimize the risk

• To maximize the wealth of owners

• To maximize profit

In his traditional role the finance manager is responsible for

• proper utilisation of funds

• arrangement of financial resources

• acquiring capital assets of the organization

• Efficient management of capital

Market value of the share are decided by

• the respective companies

• the investment market

• the government

• shareholders

Which one of the following is not a money market securities?

• Treasury Bills

• National Savings Certificate

• Certificate of Deposit

• Commercial Paper

Capital budgeting is related to

• long term assets

• short term assets

• long term and short terms assets

• fixed assets

The expansion of CAPM is

• Capital Amount Pricing Model

• Capital Asset Pricing Model

• Capital Asset Printing Model

• Capital Amount Printing Model

Working capital management is managing

• Short term assets and liabilities

• Long term assets

• Long term liabilities

• Only short term assets

The company’s average cost of capital is

• the average cost of equity shares and debentures

• the average cost of equity preference shares

• the average cost of shares and all sources of long-term funds

• the average cost of short term funds