“Capital structure decision is essentially optimisation of risk-return relationship.” Comment.
Capital structure decision is related to proportion of debt and equity in the capital structure. What proportion is maintained, decides the cost and risks.
This is because both equity and debt differ significantly in their risk and returns.
On one side, equity is a riskless source, but it has no benefit of tax deductibility of dividend, and dividends are paid out of profits after tax.
On the other hand, debentures are paid are fixed rate of interest, the interest paid are deductible from the income for tax calculation purposes. Thus, it creates a higher rate of return for equity shareholders.
However, debt is more rewarding in terms of increase in the wealth of shareholders, but increases the risk too. Thus, reckless use of debt also is unfavourable and sometimes, may even force the company to go into liquidation. Thus, capital structure should be so formed, which optimizes the risk-return relationship.
What are the steps taken by management in the planning process?
Why is management considered to be a multi-dimensional concept?
Explain the procedure for selection of employees.
How would you characterize the business environment? Explain with examples, the difference between general and specific environment.
The government of India announced Demonetization of ₹ 500 and ₹ 1,000 currency notes with effect from the midnight of November 8, 2016. As a result, the existing ₹ 500 and ₹ 1,000 currency notes ceased to be legal tender from that date. New currency notes of the denomination of ₹ 500 and ₹ 2,000 were issued by Reserve Bank of India after the announcement.
This step resulted in a substantial increase in the awareness about and use of Point of Sale machines, e-wallets, digital cash and other modes of cashless transactions. Also, increased transparency in monetary transactions and disclosure led to a rise in government revenue in the form of tax collection.
a. Enumerate the dimensions of the business environment highlighted above.
b. State the features of Demonetization.
Indian Railways has launched a new broad gauge solar power train which is going to be a path breaking leap towards making trains greener and more environment friendly. The solar power DEMU (Diesel Electric Multiple Unit) has 6 trailer coaches and is expected to save about 21,000 liters of diesel and ensure a cost saving of Rs 12, 00,000 per year. Name the objectives of management achieved by Indian Railways in the above case.
Define scientific management. State any three of its principles.
Explain the qualities of a good leader? Do the qualities alone ensure leadership success?
Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment.
Management is a series of continuous interrelated functions. Comment.
How does informal organisation support the formal organisation?
State any one situation in which an organisation’s control system loses is effectiveness.
Briefly discuss the impact of Government policy changes on business and industry.
Explain the major activities involved in the physical distribution of products.
Explain the redressal mechanism available to consumers under the Consumer Protection Act, 1986.
Sate the two objectives of financial planning.
Name the document prepared in the process of online trading of securities that is legally enforceable and helps to settle disputes/claims between the investor and the broker.
What is financial risk? Why does it arise?
Explain the qualities of a good leader? Do the qualities alone ensure leadership success?
Coordination is the essence of management. Do you agree? Give reasons.