Finance

current ratio 1.2:1

Negative TNW

Low capitalization

Negative NWC

Capital invested by owner

Selling expense for machine

Machine purchased

Daily expense to operate business

Financial Management

Profit Maximization

Agency Theory

Social Responsibility

Higher Liquidity

Higher Financial Risk

Higher Profitability

Higher Capital Employed

Bank credit

Public deposit

Commercial papers

All of these

Write-off of an uncollectible account

Collection of an accounts receivable

Sale of treasury stock

Exercise of the call option on bonds payable

Acid test ratio increases

Acid test ratio decreases

Current ratio decreases

Current ratio increases

Stakeholders

Shareholders

Bondholders

Directors

Issue of debentures to buy stock

Issue of debentures to pay creditors

Sale of investment to pay creditors

Avail bank overdraft to buy machine

Rs.12 lac

Rs.8 lac

Rs.4 lac

Rs.2 lac