Comprehension

Read the following Case Study and answer, question
Aryan is a CEO of RS Infotech Ltd., which is a company working in the technology sector for the last 55 years. The company is doing very well in this sector and now has a growth plan of entering into cosmetics market. Keeping in view the changing tastes and preferences of customers, it is planning to enter organic products market. The company targets to achieve 20% of market share in the first 2 years of its entry. For financial issues, Aryan consulted his chief finance officer, Raj and found that it requires 50 crores of additional capital for setting up a separate cosmetics division. The Company plans to arrange this money by issuing equity shares in the market but it lacks sufficient cash to bear the floatation cost and hence planned to approach the financial market for the same. Identify the type of organisation structure required by RS Infotech.

Question: 1

Identify the type of organisation structure required by RS Infotech.

Updated On: Sep 23, 2024
  • Informal Organisation
  • Formal Organisation
  • Functional Organisation Structure
  • Divisional Organisation Structure
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The Correct Option is A

Solution and Explanation

The correct option is (A) :Informal Organisation
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Question: 2

To which level of management, Aryan and Raj belongs to?

Updated On: Sep 23, 2024
  • Top level
  • Middle level
  • Lower level
  • Operational level
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The Correct Option is B

Solution and Explanation

The correct option is (B) :Middle level
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Question: 3

Identify the feature of business environment that is highlighted in the case.

Updated On: Sep 23, 2024
  • Complexity
  • Dynamic
  • Relativity
  • Interrelatedness
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The Correct Option is A

Solution and Explanation

The correct option is (A) :Complexity
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Question: 4

Identify the step of planning process mentioned in the case.

Updated On: Sep 23, 2024
  • Developing Premises
  • Follow up action
  • dentifying alternatives
  • Setting objectives
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The Correct Option is D

Solution and Explanation

The correct option is (D) :Setting objectives
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Question: 5

When the company wants to issue new shares, which financial market it is going to approach?

Updated On: Sep 23, 2024
  • Capital Market
  • Money Market
  • Primary Market
  • Secondary Market
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The Correct Option is C

Solution and Explanation

The correct option is (C) :Primary Market
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Question: 6

Identify the Money Market Instrument the company is going to use.

Updated On: Sep 23, 2024
  • Call Money
  • Commercial Paper
  • Treasury Bills
  • Commercial Bill
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The Correct Option is B

Solution and Explanation

The correct option is (B) :Commercial Paper
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Question: 7

Identify the Money Market Instrument the company is going to use.

Updated On: Sep 23, 2024
  • Dematerialisation
  • Demutualisation
  • Bridge Financing
  • Issue of Shares
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The Correct Option is C

Solution and Explanation

The correct option is (C) : Bridge Financing
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Question: 8

State the financial decision involved when the company needs additional capital for growth in different assets of the business.

Updated On: Sep 23, 2024
  • Investment decision
  • Working capital decision
  • Capital structure
  • Dividend decision
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The Correct Option is A

Solution and Explanation

The correct option is (A) :Dividend decision
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Question: 9

Name the financial decision which the company is going to make while arranging the source for required funds.

Updated On: Sep 23, 2024
  • Investment decision
  • Financing decision
  • Capital structure
  • Dividend decision
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The Correct Option is B

Solution and Explanation

The correct option is (B) :Financing decision
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Question: 10

State the type of fixed capital requirement by RS lnfotech.

Updated On: Sep 23, 2024
  • Low
  • Very low
  • Moderate
  • High
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The Correct Option is D

Solution and Explanation

The correct option is (D) :High
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