1. _________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.

A) Financial management.
B) Profit maximization.
C) Agency theory.
D) Social responsibility



2. The term _________________ refers to the period in which the project will generate the necessary cash flow to recoup the initial investment.

A) Internal return.
B) Payback period.
C) Discounting return.
D) Accounting return.



3. X ltd issues rupees 50,000 8% debentures at a discount of 5%. The tax rate is 50% the cost of debt capital is __________.

A) 4%.
B) 4.2%.
C) 4.6%.
D) 5%.



4. _______________ is one that maximizes value of business, minimizes overall cost of capital, that is flexible, simple and futuristic, that ensures adequate control on affairs of business by the owners and so on.

A) Minimal capital structure.
B) Moderate capital structure.
C) Optimal capital structure.
D) Deficit capital structure.



5. ______________ such as restriction on business expansion, on raising additional capital, on declaration of dividend, nominee directors on the board, convertibility clause, etc.

A) Trading on equity
B) Security of assets
C) Restrictive covenants
D) Debt capacity of a business