Match List-I with List-II

List-I	List-II
Decisions	Factors affecting the Decisions
---	---
(A) Fixed Capital Decision.	(I) Diversification
(B) Capital Structure Decision	(II) Cash flows of the project
(C) Working Capital Decision	(III) Control on Business
(D) Capital budgeting decision	(IV) Business Cycle

Choose the correct answer from the options given below:

Option 1 -> Fixed Capital with Cash flows is incorrect; capital budgeting evaluates cash flows, not fixed capital decisions which focus on diversification strategies.

Option 2 -> Fixed Capital with Diversification, Capital Structure with Control, Working Capital with Business Cycle, and Capital Budgeting with Cash flows - all correctly matched.

Option 3 -> Capital Structure with Cash flows is incorrect; capital structure decisions are primarily influenced by control considerations, not cash flow analysis.

Option 4 -> Multiple mismatches - Fixed Capital with Control, Capital Structure with Business Cycle are both incorrectly paired with their factors.

Hence, Option 2: (A) - (I), (B) - (III), (C) - (IV), (D) - (II) -> Fixed Capital decisions involve diversification strategies across business lines; Capital Structure decisions are affected by control considerations (equity vs debt); Working Capital requirements fluctuate with Business Cycles; Capital Budgeting fundamentally depends on evaluating project Cash flows through NPV/IRR methods -> correct