CUET Business Studies - A company will tend to pay lower rate of dividend if ___ | PYQs + Solutions

CUET Business Studies 2022 15 July Shift 2

Business Studies

Medium

Lower amount of earnings, stable earning, potentials, no shortage of cash, easy access to capital market

Restrictive clauses imposed by lender, low access to capital market, falling short of cash, good growth opportunities available.

Short of cash, good growth opportunities available, low access to capital market, enjoys stable earnings

Unstable earnings, falling short on cash, easy access to capital market, lower amount of earning

✅ Correct Option: 2

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Current assets are usually more liquid but contribute less to the profits than fixed assets. Examples of current assets are:

(A) Cash in hand/Cash at the Bank

(B) Marketable securities

(D) Finished goods inventory

Choose the correct answer from the options given below:

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Computers become obsolete fast and are replaced much sooner than furniture. The requirement of fixed capital, hence, is more for the firms dealing in computers.

Identify the factor affecting fixed capital from the above para.

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CUET Business Studies 2022 15 July Shift 2 PYQs

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