Financial management -2

Capital structure shows

• debtor-creditor ratio

• fixed assets-current assets ratio

• debt-equity ratio

• interest coverage ratio

Financial blueprints are determined by

• Financial Planning.

• Financial Leverage.

• Financial Decision

• Capital Structure

In the paint industry, various raw materials are mixed in different proportions with petroleum for manufacturing different kinds of paints. One specific raw material is not readily and regularly available to the paint manufacturing companies. Bonler Paints Company is also facing this problem and because of this there is a time lag between placing the order and the actual receipt of the material. But, once it receives the raw materials, it takes less time in converting it into finished goods.

Identify the factor affecting the working capital requirements of this industry.

• Availability of Raw Material

• production cycle

• Nature of business

• All of the above

The size of assets, the profitability and competitiveness are affected by one of the financial decisions. Name the decision

• Working capital decision

• Capital budgeting

• Dividend decision

• Financing decision

Indian Logistics' has its own warehousing arrangements at key locations across the country. Its warehousing services help business firms to reduce their overheads, increase efficiency and cut down distribution time.

State whether the working capital requirements of 'Indian Logistics' will be high or low.

• High

• Low

• Doesn't effect

Name the concept which increases the return on equity shares with a change in the capital structure of a company.

• Capital structure

• Capitol budgeting

• Trading on equity

• Dividend decision