NCERT Solutions for Class 12 Business Studies Chapter 9 Financial Management
Class 12 Business Studies Solutions Chapter 9 Financial Management By StudyEducation Short Answer Type Questions 1. What is meant by capital structure? Ans: Capital structure refers to the mix between owners and borrowed funds. It represents the proportion of equity and debt 2. Discuss the two objectives of Financial Planning. Ans: Financial Planning strives to achieve the following two objectives (i) To Ensure Availability of Funds whenever These are Required This includes a proper estimation of the funds required for different purposes such as for the purchase of long term assets or to meet day-to-day expenses of business etc. (ii) To See That the Firm Does Not Raise Resources Unnecessarily Excess funding is almost as bad as inadequate funding. Efficient financial planning ensures that funds are not raised unnecessarily in order to avoid unnecessary addition of cost. 3. What is ‘financial risk? Why does it arise? Ans: It refers to the risk of company not being able to cover its fixe...