List I (Concepts) | List II (Advantages) | ||
A. | Profit maximisation | 1. | Added flexibility |
B. | Under capitalisation | 2. | Impact on society through factor payments |
C. | Over capitalisation | 3. | Maximisation of profitability of the firm |
D. | Financial management | 4. | Higher rate of dividend |
A) A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3
B) A\[\to \]2, B\[\to \]4, C\[\to \]1, D\[\to \]3
C) A\[\to \]3, B\[\to \]2, C\[\to \]1, D\[\to \]4
D) A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]4
Correct Answer: B
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