1. _________ is the employment of an asset is sources of fund for which the firm has to pay a fixed cost or fixed return.

A) Financial management
B) Profit maximization.
C) Asset management.
D) Leverage



2. A mutually exclusive project can be selected as per payback period when it is _________.

A) Less.
B) More.
C) More than 5 years.
D) None of the above.



3. Cost of the project is 6,00,000 , life of the project is 5 years annual cash flow is 2,00,000 cut off rate is 10% the discounted pay back period is ______________.

A) 2 yrs.
B) 2 yrs 6 months.
C) 3 yrs.
D) 3 yrs 9 months.



4. ___________________ refers to make-up of a firm's capitalization.

A) Capital structure.
B) Capital budgeting.
C) Equity shares.
D) Dividend policy.



5. Debt capacity of a business needs _____________.

A) Restriction.
B) Consideration.
C) Leverage.
D) Security