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Which of the following is not considered to be an appropriate form of finance for capital investment projects?

(a) An issue of share capital. (b) A bank overdraft. (c) The issue of a debenture. (d) Leasing.

Team Management Financial Accounting Internal Audit Financial Management Financial Systems Implementation
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Date Posted: 2013/08/25
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Deleted user
by Deleted user

A bank overdraft

Nagoorammal Abdul Rahman
by Nagoorammal Abdul Rahman , Finance Manager , Vox Spectrum Limited

Answer is B: Bank overdraft.
BOD is not a suitable form of financing for a capital investment since it is a short term financing.
Issuance of cpital, debentures, leasing is the best solution to opt.

Kamran Anjum
by Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh

Option B is the right answer. A bank overdraft cannot be considered as appropriate form of finance for Capital Investment Projects. However, bank overdraft can be utilized to meet the working capital requirements.

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Answer is B- A bank overdraft

suleman anjum
by suleman anjum , Accounts and Finance Executive , Paksolarcells Pvt. ltd

B

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