Page 3 - Home Assignment 2
P. 3
In the above paragraph which factor affecting financing decisions has been
refereed to?
3-4 mark question
Q.1The management of an organization decided to enlarge the business activities
by growing the stock of raw materials and finished products at an estimated cost of
Rs. 40 lakh. Describe the various ways open to an organization to increase the
money for the reason.
Q.2 Explain any four factors affecting financing decisions of a company?
5-6 mark questions
Q.1 Explain various factors one should consider while taking investing decision.
Q.2 CBC Corporation is a large diversified manufacturer of aircraft components,
is trying to determine the initial investment required to replace an old
machine with a new, more sophisticated model. The present machine is
working correctly but in order to upgrade it with new technology, they
purchased a new machine for 1 crore and an additional Rs110 lacs will be
required to install it. the depreciation, the value of the machine becomes zero
but the owner is not ready to analyze the situation. Finally, the firm has found
that a buyer is willing to pay for the present machine and the firm refused it.
Find out which decision is taken by him and also suggest that whether
the decision is favorable or not ?
