Question

Match the types of financial decisions in List I with their real-life examples in List II: 

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

Hint:

Investment = Long-term assets; Financing = Capital raising; Dividend = Profit sharing; Working Capital = Managing short-term resources.

Answer 1

The Correct Option is C

* A - III: Investment decisions focus on allocating funds to long-term assets, e.g., purchasing machinery.
* B - IV: Financing decisions deal with raising capital, such as issuing equity or debentures.
* C - I: Dividend decisions determine the portion of profit distributed to shareholders.
* D - II: Working capital decisions manage short-term assets and liabilities to ensure smooth daily operations.