Chapter 11: Working Capital Management

Short Questions Answers 1. What do you understand by working capital cash flow cycle? How do you measure it? How can it be shortened? Firm’s liquidity has two major aspects: ongoing liquidity and protective liquidity. Ongoing liquidity refers to the inflow and outflows of cash through the firm as the product acquisition, production, sales, payment […]

Chapter 7: Cost of Capital

Short Question Answer 1. What is the significance of marginal cost of capital in decision making? Explain. Marginal cost of capital is the cost of raising an additional rupee of capital. In other words, it is the cost incurred for raising incremental funds. Thus, the weighted average cost of incremental capital is known as the […]

Chapter 1: Introduction to Financial Management

Brief Short Answer Questions 1. What do you mean by financial management? Financial management is the decision making process relating to investment, financing, working capital and dividend decision. It is concerned with procurement of funds from the least costly source of financing and their effective and efficient allocation into productive uses. 2. What is the […]