Business Studies

Financial Management

Medium

Which of the following combination of factors affecting capital structure are correct ?

(A) Cost of debt, ROI, floatation costs

(B) Floatation costs, availability of raw material

(C) Level of competition, production cycle

(D) Cost of equity, Interest coverage ratio

(E) Risk consideration, flexibility

Choose the correct answer from the options given below :

(B), (C), and (E) only

(A), (D), and (E) only

(A), (B), and (D) only

(B), (C) and (D) only

✅ Correct Option: 2

Capital structure factors per NCERT include cost of debt, ROI, floatation costs, cost of equity, interest coverage ratio, risk consideration, and flexibility, so (A), (D) and (E) are all correct combinations. Availability of raw material, level of competition, and production cycle are factors affecting working capital, not capital structure, so (B) and (C) are wrong.

2023: 22 June Shift 1

_______ of a company affects both the profitability and the financial risk.

2023: 11 June Shift 3

Match List - I with List - II.

List - I	List - II
(A) Production cycle	(I) Is reflected in a higher inventory turnover ratio
(B) Credit allowed	(II) Reduces the need of working capital
(C) Operating efficiency	(III) Increases the need of working capital
(D) Credit availed	(IV) Time span between receipt of raw material and their conversion into finished goods

Choose the correct answer from the options given below :

2023: 11 June Shift 3

Which factors are to be considered while determining Fixed Capital, out of the following ?

(A) Technology upgradation

(B) Diversification

(D) Operating efficiency

(E) Seasonal factors

Choose the correct answer from the options given below :

2023: 22 June Shift 1

Match List I with List II

LIST I	LIST II
A. Interest Coverage Ratio	I. Rate of return
B. Choice of Technique	II. Fixed Capital
C. Credit Allowed	III. Capital structure
D. Capital budgeting decisions	IV. Working Capital

Choose the correct answer from the options given below:

2023: 11 June Shift 3

Which of the following statement is TRUE regarding Factors affecting working capital Requirements ?

2023: 22 June Shift 1

Net working capital is computed as _______.

Solution

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