Define ‘Current Assets’ and give four examples.
It refers to the assets which are expected to get converted into cash or cash equivalents within a period of one year. Following are the examples of current assets:
(i) Cash in hand/cash at bank
(ii) Marketable securities
(iii) Bills Receivable
(iv) Debtors.
What is meant by Financing decision? State any four factors affecting the financing decision.
Explain briefly the factors affecting the investment decision.
Explain, in brief, any five factors that should be taken into consideration while determining the long-term dividend policy.
Or
Explain factors affecting the dividend policy of a company.
“Determining the relative proportion of various types of funds depends upon various factors”. Explain any five such factors.
Or
“Determining the overall cost of capital and the financial risk of the enterprise depends upon various factors”. Explain any five such factors.
Investment decision can be long-term or short-term. Explain long-term investment decision and state any two factors affecting this decision.
Identify the financial decision which determines the amount of profit earned to be distributed and to be retained in the business. Explain any four factors affecting this decision.
Explain, in brief, any three decisions involved in financial management.
What is meant by investment decision?
From the point of view of ‘Floatation costs’ which source of finance is most appropriate?
From the point of view of ‘Control’ which source of finance should be avoided?
Mock Test Series
