Corporate Finance and Policy

EBIT stands for

• Earnings before Interest and Tax

• Earnings before Interest and Tariff

• Earn before Interest and Tax

• Earnings before Investment and Tax

External sources of funds are

• (A) Funds from long term loans

• (B) Sale of fixed assets

• (C) Both (A) and (B)

• (D) None of the above

BANK OVERDRAFT IS A FORM OF

• SHORT TERM FUNDS

• LONG TERM FUNDS

• BOTH

• NONE OF THE ABOVE

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 maximisation

The primary goal of financial management is

• to maximize the return

• to minimize the risk

• to maximize wealth of owners

• to maximize profit

Market value of shares is influenced by

• financing decision

• investment decision

• dividend decision

• financial decision

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

• financing decision

• working capital decision

• investment decision

• none of the above

In a financial market, the price to borrow money is called the?

• Deposit

• Interest Rate

• Credit

• Cost

Which of the following can't be a Capital Structure?

• Equity + Debentures

• Equity only

• Preference Shares only

• Equity + Preference

Which is the cheapest Source of Finance

• Debt

• Equity