1. Earlier a debt equity norm of _______ was generally insisted on by the controller of capital issues.

A) 1:1
B) 1:2
C) 2:1
D) 2:2



2. The market value of the firm is the result of__________.

A) Dividend decisions.
B) Working capital decisions
C) Capital budgeting decisions.
D) Trade-off between risk and return.



3. Long term finance is required for ______________.

A) Current assets.
B) Fixed assets.
C) Intangible assets.
D) None of these.



4. _____________ is not a diversifiable or specific risk factor.

A) Company strike.
B) Bankruptcy of a major supplier.
C) Death of a key company officer.
D) Industrial recession.



5. _______ 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.