Answer in one sentence.

1. Define corporate finance.
Ans: According to Henry Hoagland, “Corporate finance deals primarily with the acquisition and use of capital by a business corporation.”

2. What is fixed capital ?
Ans: Fixed capital is that portion of capital which is invested in fixed assets such as land, building, furniture, etc.

3. Define working capital.
Ans: Gerstenbergh defines it as “The excess of current assets over current liabilities.”

4. What is production cycle ?
Ans: The process of converting raw material into finished goods is called production cycle.

5. Define capital structure.
Ans: According to R. H. Wessel, “The long term sources of funds employed in a business enterprise.”