Business Studies

Business Finance

Easy

The financial risk is:

A firm would fail to meet its legal and compliance obligations

A firm would fail to meet its audit and statutory obligations

A firm would fail to meet its productivity commitments

A firm would fail to meet its payment obligations

✅ Correct Option: 4

Financial risk refers to the chance that a firm would fail to meet its fixed payment obligations, such as interest and repayment of principal on borrowed funds. It arises from the use of debt in the capital structure. It has nothing to do with legal, audit or productivity commitments.

2026: 29 May Shift 1

Which of the following statements is NOT correct about capital structure?

2025: 15 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Mix between owners fund and borrowed fund	(I) Financial risk
(B) Inability of business to meet its obligation of payment of interest	(II) Capital structure
(C) Proportion of debt and equity in overall capital	(III) Capital budgeting decision
(D) Decisions that affect the amount of assets, competitiveness and profitability of business	(IV) Financial leverage

Choose the correct answer from the options given below:

2026: 11 May Shift 2

The correct factor affecting Dividend decision is:

2026: 12 May Shift 1

The factor affecting choice of Capital Structure is:

(A) Tax Rate

(B) Control

(D) Operating Efficiency

Choose the correct answer from the options given below:

2026: 6 June Shift 1

Financial Planning aims at enabling the company to tackle the ________ in respect of the availability and timing of the funds and helps in smooth functioning of an organisation.

2022: 15 July Shift 2

Arrange the following current assets in order of their liquidity

A. Prepaid expenses

B. Raw Material

C. Debtors

D. Finished goods inventory

E. Bills receivable

Choose the correct answer from the options given below:

The financial risk is:

Solution

Related questions:

Keyboard Shortcuts

CUET Business Studies Past Year Questions (Topic-Wise)