Unit Test

Class:-S.Y. BMS

Exam seat No:-

Time:-45 m.

Subject:- Corporate Finance

Maximum Marks:- 20

N. B.: 1. All questions are compulsory.

Ques:-1][A] Fill in the Blanks

[ 2 marks]
1) ____________is the study of a business money related decisions.[Corporate finance ,Business
,Company]
2) A company is said to be _____________when it is earning exceptional higher profit as
compared to other companies.[Over capitalized ,Under capitalized, Water Capitalized]
3) A company is said to be _____________when it is not able to pay interest on debentures and
loans [, under capitalized, Over capitalized, Water Capitalized]
4) Fixed capital is the capital required by the __________for a longer period of time. [Company,
Institutions, Government]
5) The assets are acquired for __________[Temporary, Permanent, May be some period]
Ques:- 1] [B] True OR False .

[ 2 marks]

1) Fixed capital is used to purchases fixed assets.

2) When the real value of its assets is more than its paid-up share capital its represented
watered capital.
3) The primary goal of corporate finance is to maximize or increase shareholder value.
4) There is a foreseen increase in earning of the company.
5) A stock is said to be watered when its true value is less than its book value.
Ques:-2] Answer in one sentences
marks ]
1) What is corporate finance?
2) What is capitalization?
3) Define over capitalization.
4) What is fixed capital?
5) Explain source of fixed capital.
Ques:- 3] Answer the following question ( Any Two )
[ 10 marks ]
1) What do you mean by fixed capital? Explain its characteristics.
2) What are the causes of over-capitalization?

[5

3) Explain in details the significance of corporate finance.