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Match List I with List II

LIST ILIST II
A. Interest Coverage RatioI. Rate of return
B. Choice of TechniqueII. Fixed Capital
C. Credit AllowedIII. Capital structure
D. Capital budgeting decisionsIV. Working Capital

Choose the correct answer from the options given below:

Solution

Correct Option: 3

Interest Coverage Ratio is a factor affecting capital structure (III). Choice of Technique (capital-intensive vs labour-intensive) affects fixed capital requirement (II). Credit Allowed to customers affects working capital needs (IV). Capital budgeting decisions depend on the rate of return on investment (I). Thus A-III, B-II, C-IV, D-I.

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