The financial risk is: Option 1: A firm would fail to meet its legal and compliance obligations Option 2: A firm would fail to meet its audit and statutory obligations Option 3: A firm would fail to meet its productivity commitments Option 4: A firm would fail to meet its payment obligations

The answer is 'A firm would fail to meet its payment obligations'. View full solution:

CUET Business Studies - The financial risk is: | PYQs + Solutions

CUET Business Studies 2026 21st May Shift 2

Business Studies

Easy

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

Related questions:

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:

20 Aug Shift 1

Radha Ltd has invested Rs. 100,000 in the business. Out of which Rs. 70000 is equity and Rs. 30,000 is debt. Net Profit after tax is 24,000. Calculate ROI

12th May Shift 1

Match List-I with List-II

List-I	List-II
(A) Interest Coverage Ratio	(I) Debt (D)/Equity(E) or D/D+E
(B) Financial Leverage	(II) Current Assets - Current Liabilities
(C) Return on Investment	(III) EBIT/Interest
(D) Net Working Capital	(IV) (EBIT/Total Investment)*100

Choose the correct answer from the options given below:

CUET Business Studies 2026 21st May Shift 2 PYQs

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