Business Studies

Business Finance

Medium

Identify one statement among the following that is NOT true about capital budgeting:

These decisions are very crucial for any business since they affect its long run earning capacity

The size of assets, profitability and competitiveness are all affected by these decisions

These are concerned with levels of cash, inventory and recievable

These decisions are irreversible except at a huge cost.

✅ Correct Option: 3

Capital budgeting deals with long-term investment decisions in fixed assets. Concerns about cash, inventory and receivables belong to working capital management, not capital budgeting. Hence the statement in option 3 is NOT true about capital budgeting.

2023: 29 May Shift 2

Match List I with List II

LIST I		LIST II
A. Treasury Bill	I.	Mobilise large amount of money
B. Commercial paper	II.	Maturity period of one day to fifteen days
C. Call money	III.	Maturity period of 15 days to one year
D. Certificate of Deposit	IV.	Issued by RBI

Choose the correct answer from the options given below:

2022: 15 July Shift 2

A company will tend to pay lower rate of dividend if ___

2022: 20 Aug Shift 1

Match the following components with the given information

List I	List II
A. Capital structure	I. Speculator who expects the prices to go down
B. Bear	II. Speculator expecting a rise in the prices
C. Bull	III. Proportion of debt and equality in total Capital
D. Shareholder's Wealth	IV. Maximisation of the market value of equity shares

2025: 26 May Shift 2

In the context of ABC Manufacturing Ltd., the basic requirement of financial planning is to:

2025: 2 June Shift 2

"He is working out to ensure that enough funds are available at right time." The above statement indicates that Arun is involved in:

2026: 24 May Shift 1

Match List-I with List-II

List-I (Concepts of Financial management)	List-II (Computation)
(A) Net Working Capital	(I) Debt/Equity
(B) Financial Leverage	(II) (Profit after tax + Depreciation + Interest + Non Cash exp.) / (Pref. Div + Interest + Repayment obligation)
(C) Interest Coverage Ratio	(III) Current Assets-Current Liabilities
(D) Debt Service Coverage Ratio	(IV) EBIT/Interest

Choose the correct answer from the options given below:

Identify one statement among the following that is NOT true about capital budgeting:

Solution

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