The cost in the process of raising fund through equity is known as _____. Option 1: Financial risk Option 2: Cost of debt Option 3: Floatation cost Option 4: Cost of capital

The answer is 'Floatation cost'. View full solution:

CUET Business Studies - The cost in the process of raising fund through equity is known as _____. | PYQs + Solutions

CUET Business Studies 2022 6 Oct Shift 1

Business Studies

Easy

Financial risk

Cost of debt

Floatation cost

Cost of capital

✅ Correct Option: 3

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It refers to a position when a company is unable to meet its fixed financial charges namely interest payment, preference dividend and repayment obligations.

Name the concept highlighted in the above lines:

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What is the consequence of increasing debt in a company's capital structure?

27 May Shift 2

Match List-I with List-II

List-I	List-II
Concept	Meaning
(A) Working Capital	(I) It refers to the mix between owners and borrowed funds for the sources of business finance.
(B) Financial Management	(II) It is essentially preparation of a financial blueprint for an organization's future operations.
(C) Capital Structure	(III) This investment facilitates smooth day-to-day operations of the organization.
(D) Financial Planning	(IV) It is concerned with optimal procurement as well as usage of finance.

Choose the correct answer from the options given below:

CUET Business Studies 2022 6 Oct Shift 1 PYQs

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