Business Studies

Business Finance

Medium

'The decision determines the overall cost of capital and the financial risk of the enterprises.' Which decision is highlighted in the above statement?

Dividend decision

Capital budgeting decision

Working capital decision

Financing decision

✅ Correct Option: 4

Financing decision determines the mix of owned funds and borrowed funds. The proportion of debt and equity directly affects the overall cost of capital and the financial risk of the firm, since debt carries fixed interest obligations. Dividend decision relates to distribution of profits, capital budgeting to long-term investment, and working capital to day-to-day needs.

2026: 21 May Shift 2

The impact of tax rate on cost of debt is:

2025: 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:

2022: 20 Aug Shift 1

Given below are the examples of current Assets. Identify which of them is highly liquid?

2025: 26 May Shift 2

Which of the following ensures smooth operations in production?

2022: 20 Aug Shift 1

"A company has the policy of giving liberal credit to its customers in order to increase the sales."

Identify the factor affecting working capital requirement in the above situation.

2026: 11 May Shift 1

The Interest Coverage Ratio (ICR) can be calculated as?

'The decision determines the overall cost of capital and the financial risk of the enterprises.' Which decision is highlighted in the above statement?

Solution

Related questions:

Keyboard Shortcuts

CUET Business Studies Past Year Questions (Topic-Wise)