Using the balance sheet model of the firm, finance may be thought of as analysis of three primary subject areas. Which of the following groups correctly lists these three areas?
A) Capital budgeting, capital structure, net working capital.
B) Capital budgeting, capital structure, security marketing.
C) Capital budgeting, net working capital, tax analysis.
D) Capital budgeting, tax analysis, security marketing.
E) Net working capital, tax analysis, security marketing.

Question

Quizplus · Accepted Answer

The three primary areas of finance, according to the balance sheet model of the firm, are capital budgeting (deciding on which projects to invest in), capital structure (determining the best mix of debt and equity financing), and net working capital (managing short-term assets and liabilities).

Using the Balance Sheet Model of the Firm, Finance May