Match List-I with List-II
List-I List-II Concept Description (A) Capital Structure (I) Long Term Investment. (B) Capital Budgeting (II) Profit distributed to shareholders. (C) Working Capital (III) Financing Mix of business. (D) Dividend (IV) Money required for short-term needs.
Choose the correct answer from the options given below:
Match List-I with List-II
| List-I | List-II |
|---|---|
| Concept | Description |
| (A) Capital Structure | (I) Long Term Investment. |
| (B) Capital Budgeting | (II) Profit distributed to shareholders. |
| (C) Working Capital | (III) Financing Mix of business. |
| (D) Dividend | (IV) Money required for short-term needs. |
Choose the correct answer from the options given below:
Solution
Capital Structure means the financing mix of the business.
Capital Budgeting means decisions relating to long-term investment.
Working Capital means money required for short-term needs of the business.
Dividend means the profit distributed to shareholders -> Just knowing this much would have allowed you to answer Option-4 easily!
Capital structure is about how a firm finances itself, like equity and debt. Capital budgeting is about investing in long-term assets. Working capital is used for day-to-day operations. Dividend is the share of profit given to shareholders.
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