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CUET Business Studies 2025 PYQs31 May Shift 1. Free, no login required.

Business Studies

past year questions, CUET Business Studies 2025 31 May Shift 1

Business Finance

past year questions, Business Studies, CUET Business Studies 2025 31 May Shift 1

Easy

Read the following passage carefully and answer the questions given below

'Laxmi Enterprise' is a textile manufacturing firm. It has been consistently earning good profits for many years. This year, too, it has been able to generate enough profits. There is availability of enough cash in the company and good prospects for growth in the future. Now they wished to diversify their business. The CEO of Laxmi Enterprise is considering two options, either to diversify into manufacturing cosmetics or switches. So they wanted to purchase land, to set up a manufacturing unit in the backward area of Assam, which would lead to the generation of employment opportunities in the area, but only after fulfilling all legal requirements and taking appropriate steps to ensure that the environment was not polluted. The finance manager of the company, Mr. Vikrant was asked by the management to prepare a report on the factors that should be considered while making their decisions.

Which of the following decision is being considered by the management in the above case?

Solution

✅ Correct Option: 1

Note: The case context is not provided in your question. Below is a formatted response based on the correct answer being Option 1. For accurate explanations, please share the case details.

Option 1: Investment Decision -> Relates to decisions about where to allocate funds for acquiring assets or undertaking projects to generate returns.

Option 2: Financing Decision -> Concerns decisions about raising capital through debt, equity, or other sources to fund business operations.

Option 3: Dividend Decision -> Involves determining how much profit should be distributed to shareholders versus retained in the business.

Option 4: Working Capital Decision -> Deals with managing short-term assets and liabilities to ensure smooth day-to-day operations.

Hence, Option 1: Investment Decision -> The case likely involves management deciding whether to acquire assets, invest in a project, or allocate resources for capital expenditure to generate future returns -> correct

More from this set:

Question 46

Identify the incorrect statement related to the decision of investing in a land by the company, from the options given below:

Question 47

The decision considered by the management in the above case is related to:

Question 49

Which of the following is not affected by the decision being considered by the management?

Question 50

Which of the following is not a factor affecting the important decision being discussed in the passage above?

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CUET Business Studies Past Year Questions (Topic-Wise)