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

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Which of the following is an example of a capital investment project?
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Emad Mohammed said abdalla
03-August-2015

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

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Date de publication: 2013/08/25

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par Utilisateur supprimé

A bank overdraft

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par 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.

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par 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.

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

Answer is B- A bank overdraft

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