Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

Read the following passage and answer the question.

MAM is renowned multiplex operator in India. It own around 500 screens in 100 properties at 90 locations in the country. Considering the fact that there is more growing trend among the people to spend more of their disposable income on entertainment, company planned to add more screen at existing locations and start at new locations also. Further, they plan to add food chain also at their locations. The company planned to float equity shares in market to raise the desired capital. The issue was fully subscribed and paid. Over the year, the sale and the profit of the company have increased tremendously and it has been declaring higher dividend and the market price of its share has increased manifolds.

Identify the decision involved in the given lines.

"The company planned to float equity shares in market to raise the desired capital. The issue was fully subscribed and paid."

Options:

Financing decision

Dividend decision

Investment decision

None of these

Correct Answer:

Financing decision

Explanation:

The correct answer is option 1- Financing decision.

The decision involved in the given lines is Financing decision.

The passage discusses MAM's decision to float equity shares in the market to raise capital. This action pertains to how the company raises funds for its operations and expansion, which is a financing decision.