'The decision determines the overall cost of capital and the financial risk of the enterprises.' Which decision is highlighted in the above statement? Option 1: Dividend decision Option 2: Capital budgeting decision Option 3: Working capital decision Option 4: Financing decision

The answer is 'Financing decision'. View full solution:

CUET Business Studies - 'The decision determines the overall cost of capital and the financial risk of the enterprises.' Which decision is highlighted in the above statement? | PYQs + Solutions

CUET Business Studies 2022 16 July Shift 2

Business Studies

Medium

Dividend decision

Capital budgeting decision

Working capital decision

Financing decision

✅ Correct Option: 4

Related questions:

30 May Shift 2

Which of the following factors affects capital budgeting decisions?

(A) Cash flows of the project

(B) The investment criteria involved

(D) Level of competition

Choose the correct answer from the options given below:

13 May Shift 1

Which process evaluates the viability of long-term investment projects?

3 June Shift 1

Match List-I with List-II

List-I	List-II
Concept	Equation
(A) Financial Leverage	(I) (Profit after tax+depreciation+interest+non cash expenses)/ (pref dividend+interest+repayment obligation)
(B) Net Working Capital	(II) Debt/Equity
(C) Interest Coverage Ratio	(III) Current Assets - Current Liabilities
(D) Debt service coverage ratio	(IV) EBIT/Interest

Choose the correct answer from the options given below: