Match List I with List II

Choose the correct answer from the options given below :

A-II, B-III, C-IV, D-I

The correct answer is option (1) : A-II, B-III, C-IV, D-I

The correct matching of List I with List II is as follows:

• A. Mix between owners and borrowed funds - II. Capital Structure

The capital structure of a business refers to the mix of financing sources, which includes a combination of equity (owner's funds) and debt (borrowed funds). The decision on the mix between owners' and borrowed funds is a key
aspect of capital structure management.

• B. Financing Decision - III. Control Consideration

Control consideration is one of the factors affecting financing decision.

• C. Fixed Capital Requirement -IV. Diversification

The financing decision relates to how a company raises funds for its operations, growth, or investment. Diversification, on the other hand, is a strategy where a company expands its business into different products, markets, or industries. Diversification can be a significant factor in the financing decision when a company decides to allocate resources for various ventures.

• D. Working Capital Requirement - I. Seasonal factors

Seasonal factors are on of the important factors affecting working affecting working capital requirement.