Investment Decision

Q.

Entrepreneurs undertake

(a) Calculated risk

(b) High risk

(c) Low risk

(d) Moderate and calculated risk

Q.

Capital budgeting decisions are based on

1. incremental profit

2. incremental cash flows

3. incremental assets

4. incremental capital

Q. In an attempt to cope with Reliance Jio's onslaught in 2018, market leader Bharti Airtel has refreshed its ₹ 149 prepaid plan to offer 2 GB of 3G/4G data per day, twice the amount it offered earlier. Name the type of plan is highlighted in the given example.? State its three dimensions also.

Q. decision is also known as a short-term investment decision.

1. Capital Structure
2. Capital budgeting
3. Financing
4. Working Capital

Q.

Is depreciation an abnormal loss?

Q.

''Entrepreneurs undertake moderate risks''. Elaborate this statement.

Q. What is meant by 'Investment Decision'?

Q. What is meant y 'Financial Management'?

Q.

A decision to acquire a new and modern plant to upgrade an old one is a:

1. Financing Decision

2. Investment decision

3. Working capital decision

4. None of the above

Q.

A decision to acquire a new and modern plant to upgrade an old one is a

(a) financing decision

(b) working capital decision

(c) investment decision

(d) None of the above

Q.

Which of the following is not concerned with the long term investment decision

1. Opening a new branch

2. Inventory management

3. Management of fixed capital

4. Research and Development Programme

Q.

Which of the following is not concerned with long-term investment decision?

1. Advertisement campaign

2. Day to day working

3. Purchase of fixed asset

4. Launching a new product line

Q.

Bharti Ltd. is a leading mobile company. It is planning to acquire Queen Ltd's (its close competitor) business worth Rs.1, 000 crore. Which financial decision is involved in it?

1. Investment decision

2. Return on investment

3. Budget

4. All of the above

Q.

Canara bank wants to open a new branch on their own. What is this decision called?

1. Business decision

2. Investment decision

3. Dividend decision

4. Financial decision

Q. Enumerate three important decisions taken in financial management?

Q. decision involves deciding from where to get maximum returns from minimum investment.

1. Financial
2. Investment
3. Dividend
4. Administrative

Q. There are three major decisions which an organisation has to take in respect of financial management. Enumerate and explain these decisions in brief.

Q.

What is a fixed asset management system?

Q.

What is the role of a fixed asset manager?

Q.

To what account if net purchases is closed?

Q. Investment decision can be long-term. Explain long term investment decision and state any two factors affecting this decision.

Q.

Is return on investment an important determinant of a company's ability of trading on equity? State true or false.

1. True

2. False

Q. Give the other name of Long-term Investment Decision and state any three factors which affect this decision?

Q. Why is capital budgeting decision considered as an important decision?

Q. is also known as long term investment decision.

1. Capital Structure
2. Capital budgeting
3. Financing
4. Working Capital

Q.

Is risk considered as an important factor while taking the investment decision? Agree or disagree.

1. Agree

2. Disagree

Q.

___ may be defined as those decisions, which are related to the investment of funds into different assets in a manner so that the firm is able to earn the highest possible returns for their investors.

1. Invesmtnet Decision

2. Financial Mangement

3. Financing Decision

4. Capital Structure

Q. Short term investment decisions are also called as __________ decisions.

1. capital budgeting
2. both a and b
3. wealth maximization
4. working capital

Q. How does "Trading on Equity" affect the choice of capital structure of a company? Explain with the help of a suitable example.

Q. Which one of the following is not the internal factor affecting the weighted average cost of capital of a firm?

1. Capital structure of the firm
2. Dividend policy followed
3. Market risk premium for the firm
4. Investment policy of the firm