Match list I with list II.
| LIST 1 |
LIST II |
| A. The mix between owners' and borrowed funds | I. Financial Planning |
| B. Quantum of finance to be raised from various long term sources | II. Investment Decisions |
| C. How the firm's funds are invested | III. Capital Structure |
| D. Financial blue print of an organisation | IV. Financing Decisions |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A)-(III), (B)-(IV), (C)-(II), (D)-(I)
(A) The mix between owners’ and borrowed funds → (III) Capital Structure — Capital structure refers to the mix between owners’ and borrowed funds.
(B) Quantum of finance to be raised from various long term sources → (IV) Financing Decisions — The financing decision is about how much money to raise and from which long-term sources.
(C) How the firm’s funds are invested → (II) Investment Decisions — The investment decision relates to how the firm’s funds are invested in different assets.
(D) Financial blue print of an organisation → (I) Financial Planning — Financial planning is the preparation of a financial blueprint of the organisation’s future operations.
NCERT (2026-27 Edition): “Capital Structure … Capital structure refers to the mix between owners and borrowed funds.” “Financing Decision This decision is about the quantum of finance to be raised from various long-term sources. …” “Investment Decision A firm’s resources are scarce in comparison to the uses to which they can be put. A firm, therefore, has to choose where to invest these resources, so that they are able to earn the highest possible return for their investors. The investment decision, therefore, relates to how the firm’s funds are invested in different assets.” “Financial Planning Financial planning is essentially the preparation of a financial blueprint of an organisation’s future operations. …” |