Read the ‘Corporate Finance Textbook 7th Edition by Brealey-Meyers. You are to read from page 3 to page 11 and answer the questions below strictly based on pages 3 to 11:

Question

1.1. Comprehension Passage: Complete the following passage by fitting into the blank spaces (a to h) the italicized terms below the passage into the most appropriate space:
“Companies usually buy ........(a)............ assets. These include both tangible assets such as......(b)........ and intangible assets such as .......(c).......... To pay for these assets, they sell.........(d).......... assets such as .........(e)......... The decision about which assets to buy is usually termed the .........(f)........... or ..........(g)............. decision. The decision about how to raise the money is usually termed the ........(h)........... decision.” Now fit each of the following terms into the most appropriate space:
The Terms: financing, real, bonds, investment, executive airplanes, financial, capital
budgeting, brand names.

Answer 1

Here's the completed passage with the terms filled in appropriately:

“Companies usually buy (a) real assets. These include both tangible assets such as (b) executive airplanes and intangible assets such as (c) brand names. To pay for these assets, they sell (d) financial assets such as (e) bonds. The decision about which assets to buy is usually termed the (f) investment or (g) capital budgeting decision. The decision about how to raise the money is usually termed the (h) financing decision.”