Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

Match List-I with List-II.

List-I List-II
(A) Ensures that enough funds are available at right time (I) Financing Decision
(B) Quantum of finance to be raised (II) Dividend Decision
(C) How the Firm's funds are invested (III) Financial Decision
(D)How much profit should be retained (IV) Investment Decision

Choose the correct answer from the options given below :

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is option (3) : (A)-(III), (B)-(I), (C)-(IV), (D)-(II)

(A) Ensures that enough funds are available at the right time - (III) Financial Decision:

• This decision involves managing the firm's finances effectively to ensure that the company has enough funds available when needed.

(B) Quantum of finance to be raised - (I) Financing Decision:

• This decision pertains to determining how much finance or capital is required and how it can be procured. It deals with the decision-making process of raising the necessary funds for the business.

(C) How the Firm's funds are invested - (IV) Investment Decision:

• This decision involves the allocation of funds to various assets or projects to generate returns for the company.

(D) How much profit should be retained -(II) Dividend Decision:

 • This decision revolves around the company's policy regarding the amount of profit that should be retained for reinvestment in the business and how much should be distributed among shareholders as dividends.