AfterBoards Logo
Skip to main contentSkip to solution

CUET Business Studies 2025 PYQs13 May Shift 1. Free, no login required.

Business Studies

past year questions, CUET Business Studies 2025 13 May Shift 1

Business Finance

past year questions, Business Studies, CUET Business Studies 2025 13 May Shift 1

Easy

GreenTech Solutions, a renewable energy company, focuses on achieving financial stability and growth through robust financial management. The company ensures efficient allocation of business finance to expand operations, adopt new technology, and maintain a competitive edge. Its financial planning is centered on long-term sustainability, balancing profitability with eco-friendly initiatives.

To optimize its capital structure, GreenTech maintains a balanced mix of debt and equity, minimizing the cost of capital while ensuring financial flexibility. The firm undertakes thorough capital budgeting processes to evaluate projects like setting up new solar farms, ensuring only viable investments are pursued. Tools like Net Present Value (NPV) and Internal Rate of Return (IRR) guide decision-making.

GreenTech's dividend decision aligns with its growth strategy. While retaining a significant portion of earnings for reinvestment, the company ensures consistent dividends to satisfy shareholders. This approach strengthens investor confidence while funding expansion plans.

Efficient working capital management ensures smooth day-to-day operations. By optimizing cash flow, managing inventory, and negotiating favorable credit terms with suppliers, GreenTech avoids liquidity issues while meeting short-term obligations.

Through prudent financial strategies, GreenTech achieves its goal of profitability and sustainability, setting an example in the renewable energy sector.

What is the primary goal of financial management?

Solution

✅ Correct Option: 2

Option 1 -> Maximizing revenue focuses only on increasing sales, but doesn't consider costs, profitability, or long-term value creation.

Option 2 -> Maximizing shareholders' wealth is the ultimate objective of financial management, encompassing profit maximization, risk management, and sustainable value creation.

Option 3 -> Minimizing expenses alone can harm business growth and competitiveness; cost control is important but not the primary goal.

Option 4 -> Expanding the business is a strategy or means to achieve wealth maximization, not the primary goal itself.

Hence, Option 2: Maximizing shareholders' wealth -> This is the primary goal of financial management as it considers all aspects of financial decision-making including profitability, risk, timing of returns, and long-term sustainable growth. It balances the interests of all stakeholders while ensuring optimal allocation of resources to create maximum value for shareholders -> correct

More from this set:

Question 46

Which component is NOT a part of GreenTech's financial management?

Question 47

Financial Planning of a company is essentially known as ________?

Question 48

What does GreenTech prioritize in working capital management?

Question 50

Which process evaluates the viability of long-term investment projects?

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question

CUET Business Studies Past Year Questions (Topic-Wise)