CUET Business Studies 2025 14 May Shift 1 - ABC Ltd. has debt equity ratio of 3:1, whereas XYZ Ltd. has debt equity ratio of 1:1. Name the advantage ABC Ltd will have over XYZ Ltd., when the rate of interest is lower than the rate of return on investment of the company. | PYQs + Solutions

CUET Business Studies 2025 14 May Shift 1

Business Studies

Medium

Trading on Equity

Low Risk

Trading on Debt

Greater flexibility

✅ Correct Option: 1

Related questions:

30 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Capital Structure	(I) Long Term Investment.
(B) Capital Budgeting	(II) Profit distributed to shareholders.
(C) Working Capital	(III) Financing Mix of business.
(D) Dividend	(IV) Money required for short-term needs.

Choose the correct answer from the options given below:

15 May Shift 2

Which financial decision relates to committing the company's finances on a long term basis to different assets?

14 May Shift 1

_______ refers to the mix between owners funds and borrowed funds?

CUET Business Studies 2025 14 May Shift 1 PYQs