Match the items of List - I with those of List - II and indicate the correct code : List-IList-II (a)…
The Net Income Approach is a theory of Capital Structure Planning ((a)-(iii)), Profitability Index (PI) is a discounted cash flow technique for Capital Budgeting Decisions…
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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- capitalisation |
| (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 is a theory of Capital Structure Planning ((a)-(iii)), Profitability Index (PI) is a discounted cash flow technique for Capital Budgeting Decisions ((b)-(iv)), Concentration Banking is a cash collection technique in Working Capital Management ((c)-(i)), and a persistently Lower Rate of Return than the industry norm is a symptom of Over-capitalisation ((d)-(ii)).
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UGC NET Commerce