Business Studies

Business Finance

Easy

Management of fixed capital means:

Allocation of a firm's capital to different projects with short-term implications

Allocation of a firm's capital to different projects with long-term implications

Management of current assets

Promoting the liquidity

✅ Correct Option: 2

Management of fixed capital involves allocating the firm's capital to different projects or assets whose benefits accrue over the long term, i.e., capital budgeting or investment decisions. These decisions involve large funds, are largely irreversible and influence long-term growth. Current assets and liquidity relate to working capital management.

2025: 14 May Shift 1

What is the consequence of increasing debt in a company's capital structure?

2025: 22 May Shift 1

The objective of financial management is to maximize the current price of equity shares of the company. This concept is:

2025: 13 May Shift 1

What is the primary goal of financial management?

2025: 22 May Shift 2

Current assets are usually more liquid but contribute less to the profits than fixed assets. Examples of current assets are:

(A) Cash in hand/Cash at the Bank

(B) Marketable securities

(D) Finished goods inventory

Choose the correct answer from the options given below:

2025: 26 May Shift 2

What is an optimal capital structure for ABC Ltd.?

2026: 12 May Shift 1

Financial leverage is associated with :

(A) Unstable return

(B) Proportion of debt

(D) Proportion of equity

Choose the correct answer from the options given below:

Management of fixed capital means:

Solution

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