Business Studies

Business Finance

Medium

Which among the following is not a factor affecting the choice of capital structure?

Fixed costs

Floataion costs

Cost of Equity

Interest coverage ratio

✅ Correct Option: 1

NCERT lists flotation costs, cost of equity, interest coverage ratio, cash flow position, ROI, cost of debt, tax rate, risk, control, flexibility etc. as factors affecting capital structure. 'Fixed costs' as such is not listed as a capital structure factor; it relates to operating/business risk.

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.

2025: 14 May Shift 1

What is the consequence of increasing debt in a company's capital structure?

2023: 29 May Shift 2

Arrange the Channels of Distribution in order for a consumer product

A. Consumer

B. Retailer

C. Wholesaler

D. Producer

Choose the correct answer from the option given below:

2026: 13 May Shift 1

Identify the factors affecting the requirement of Working Capital?

(A) Seasonal Factors

(B) Production Cycle

(D) Level of Competition

Choose the correct answer from the options given below:

2025: 13 May Shift 1

What does GreenTech prioritize in working capital management?

2025: 14 May Shift 1

Arrange the following current assets, in descending order of liquidity.

(A) Cash in hand

(B) Bills receivable

(D) Finished goods inventory

Choose the correct answer from the options given below:

Which among the following is not a factor affecting the choice of capital structure?

Solution

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