The _________ decision involves determining the appropriate make-up of the right-hand side of the balance sheet.
| A. | asset management |
| B. | financing |
| C. | investment |
| D. | capital budgeting |
|
Option: B Explanation : Click on Discuss to view users comments. |
Financial Management is the
| A. | Application of Planning and Control Function to the Finance Function |
| B. | Application of cost plan in respect of production |
| C. | Application of costing system |
| D. | Art of recording |
|
Option: A Explanation : Click on Discuss to view users comments. |
The corporate finance theory implies that
| A. | Owners have the primary interest in the firm |
| B. | The firm should accept only those investment which generate positive net present value |
| C. | The firm capital structure and dividend decisions are irrelevant as they are solely guided by efficient capital markets and management has no control over them |
| D. | All of the above |
|
Option: D Explanation : Click on Discuss to view users comments. |
What is a leveraged buyout?
| A. | It is a type of joint venture. |
| B. | It is an acquisition in which a large acquirer has leverage through bargaining power over a small target. |
| C. | It is an acquisition which is funded from a relatively large amount of debt. |
| D. | It is an acquisition which is funded from a relatively low amount of debt. |
|
Option: C Explanation : Click on Discuss to view users comments. |
