Question

Match List - I with List - II 

• A. (A)-(I), (B)-(II), (C)-(III), (D)-(IV)
• B. (A)-(I), (B)-(III), (C)-(IV), (D)-(II)
• C. (A)-(I), (B)-(III), (C)-(II), (D)-(IV)
• D. (A)-(I), (B)-(IV), (C)-(II), (D)-(III)

Hint:

Credit = Working Capital (short-term). Diversification = Fixed Capital (long-term). Control = Capital Structure (mix of debt and equity). Legal = Dividend decisions (governed by law).

Answer 1

The Correct Option is A

The matching is derived from the types of financial management decisions:
(A) - (I): Credit acquisition impacts working capital, which is the short-term funding for a business's day-to-day operations.
(B) - (II): Diversification, involving expansion into new markets or products, usually necessitates fixed capital investment due to its long-term nature.
(C) - (III): Control factors, such as a company's ownership structure, influence capital structure (the mix of debt and equity), affecting financial risk and return.
(D) - (IV): Legal restrictions shape dividend policies, as regulations govern the distribution or reinvestment of profits to shareholders.