Debt is _______ but is more _______ for a business, the payment of interest and the return of principal is obligatory for the business. Option 1: Cheaper, risky Option 2: Cheaper, safe Option 3: Expensive, risky Option 4: Expensive, safe

The answer is 'Cheaper, risky'. View full solution:

CUET Business Studies - Debt is _______ but is more _______ for a business, the payment of interest and the return of principal is obligatory for the business. | PYQs + Solutions

CUET Business Studies

Business Studies

Medium

Cheaper, risky

Cheaper, safe

Expensive, risky

Expensive, safe

✅ Correct Option: 1

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Which of the following statements are correct?

(A) Deciding about the capital structure of a firm involves determining the relative proportion of various types of funds.

(B) Capital structure decision is essentially affected by the regulatory framework provided by the law.

(D) Capital structure refers to the mix between reserves and borrowed funds.

Choose the correct answer from the options given below: