Business Studies

Business Finance

Easy

The cost in the process of raising fund through equity is known as _____.

Financial risk

Cost of debt

Floatation cost

Cost of capital

✅ Correct Option: 3

Floatation cost refers to the expenses incurred in raising funds through equity or other securities, such as underwriting commission, brokerage, and stationery expenses. Higher floatation costs make a particular source of finance less attractive. Cost of capital is the overall required return on the firm's invested capital.

2026: 12 May Shift 1

The order of liquidating current assets is:

(A) Prepaid Expenses

(B) Finished goods inventory

(D) Cash at Bank

Choose the correct answer from the options given below:

2022: 17 Aug Shift 1

Name the primary objective of Financial Management.

2026: 11 May Shift 1

Match the LIST-I with LIST-II

LIST-I (Type of Decision or Requirement)	LIST-II (Factors affecting)
A. Dividend Decision	I. Fixed operating costs
B. Financing Decision	II. The investment criteria involved
C. Capital Budgeting Decision	III. Business Cycle
D. Working Capital requirement	IV. Shareholder's preference

Choose the correct answer from the options given below:

2025: 16 May Shift 1

Which of the following is not a decision in financial management?

2023: 29 May Shift 2

As per Consumer Protection Act, 2019, State commission has a jurisdiction to entertain complaints where value of goods and services paid as consideration:-

2025: 16 May Shift 1

Capital structure refers to the mix of own and borrowed funds. The factors affecting the choice of capital structure are:

(A) Business Cycle

(B) Cost of debt

(D) Cost of Equity

Choose the correct answer from the options given below:

The cost in the process of raising fund through equity is known as _____.

Solution

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