Tag: financing

Quizzes (12) Questions (42)

Questions Related to financing

Multiple choice commerce business finance financial planning financing financial management

____________ means pre-estimating financial needs of an organization to ensure availability of adequate finance.

  1. Financial planning

  2. Material planning

  3. Value chain planning

  4. Capital structure decision
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Financial Planning is the process of estimating the capital required and determining it’s competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.

Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives.

Multiple choice commerce business finance financial planning financing financial management

The working capital term loan representing excess borrowings

  1. Should be gradually reduced

  2. Should be allowed to go up

  3. Should not be allowed to go up

  4. Both (a) and (c)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Excess borrowings in working capital loans represent inefficient capital management and should be reduced to optimize the financial structure and minimize interest costs.