Match List-I with List-II

List-I	List-II
(A) Mix between owners fund and borrowed fund	(I) Financial risk
(B) Inability of business to meet its obligation of payment of interest	(II) Capital structure
(C) Proportion of debt and equity in overall capital	(III) Capital budgeting decision
(D) Decisions that affect the amount of assets, competitiveness and profitability of business	(IV) Financial leverage

Choose the correct answer from the options given below:

Option 1 -> This incorrectly matches "Mix between owners fund and borrowed fund" with Financial risk, and "Proportion of debt and equity" with Capital budgeting decision, which are wrong associations.

Option 2 -> This incorrectly pairs "Inability to meet payment obligations" with Capital budgeting decision, and "Proportion of debt and equity" with Capital structure, which doesn't align with standard financial definitions.

Option 3 -> This correctly matches: (A) Mix of funds = Capital structure; (B) Inability to pay = Financial risk; (C) Debt-equity proportion = Financial leverage; (D) Asset decisions = Capital budgeting decision. All pairings align with financial management concepts.

Option 4 -> This incorrectly associates "Mix between owners fund and borrowed fund" with Capital budgeting decision and mismatches other terms completely.

Hence, Option 3: (A) - (II), (B) - (I), (C) - (IV), (D) - (III) -> Capital structure represents the mix of owner's and borrowed funds; Financial risk arises from inability to meet interest obligations; Financial leverage is measured by the proportion of debt to equity; Capital budgeting decisions involve long-term asset investments affecting profitability and competitiveness -> correct