Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

Match List I with List II

List I List II
A. Working capital I Mix between owners and borrowed funds
B. Capital budgeting II Excess of current assets
C. Capital structure III Long term investment decision
D. Financial leverage IV The proportion of debt in the overall capital

Choose the correct answer from the options given below :

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is option (4) : A-II, B-IV, C-I, D-III

To match List I with List II, let's consider the definitions and descriptions of the financial terms in List I and match them with the corresponding terms in List II:

A. Working capital - II. Excess of current assets over current liabilities

B. Capital Structure - I. Mix between owners and borrowed funds.

C. Capital budgeting - IV. A long term investment decision

D. Financial leverage- III. The proportion of debt in the overall capital