Decision Making Tools in Financial Management
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Business and Financial Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 85 rapid-fire Q&A cards.
What is described as the lifeblood of the organisation?
Finance.
What is fixed capital?
Long-term funds used to create production facilities through plant, machinery, land and building.
What is working capital?
Short-term funds for raw material, wages and day-to-day operating expenses.
What is the formula for working capital?
Working Capital = Current Assets minus Current Liabilities.
On what four axes are sources of finance classified?
Period, Ownership, Source and Mode (POSM).
Name short-term sources of finance.
Bank credit, customer advances, trade credit, factoring, accruals and commercial paper.
Name medium-term sources of finance.
Preference shares, debentures, bank loans and public/fixed deposits (1-5 years).
Name long-term sources of finance.
Equity shares, debentures, ploughing back of profits and loans from specialised financial institutions.
MCQ practice tests
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