Match the items of List-I with those of List-II and indicate the correct code: List-IList-II (a) Net…
The net income approach concerns capital structure planning, while the profitability index supports capital budgeting decisions. Concentration banking is a working capital…
Choose your answer
Match the items of List-I with those of List-II and indicate the correct code:
| List-I | List-II |
|---|---|
| (a) Net Income Approach | (i) Working Capital Management |
| (b) Profitability Index | (ii) Over-Capitalization |
| (c) Concentration Banking | (iii) Capital Structure Planning |
| (d) Lower Rate of Return | (iv) Capital Budgeting Decision |
Answer and explanation
Correct answer A
The net income approach concerns capital structure planning, while the profitability index supports capital budgeting decisions. Concentration banking is a working capital management technique, and a lower rate of return is associated with over-capitalization.
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West Bengal SET (WB SET)