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CUET Business Studies 2026 PYQs23 May Shift 1. Free, no login required.

Business Studies

past year questions, CUET Business Studies 2026 23 May Shift 1

Business Finance

past year questions, Business Studies, CUET Business Studies 2026 23 May Shift 1

Medium

The financing decisions are affected by various factors. Some of them are as follows:

A. Risk associated with each source

B. Cash flow position of competing company

C. Floatation costs

D. Stability of earnings

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 4

Factors affecting the financing decision include cost, risk associated with each source (A), floatation costs (C), cash flow position of the company itself, fixed operating costs, control considerations and the state of the capital market. The cash flow position of a competing company (B) is irrelevant, and stability of earnings (D) is a factor affecting the dividend decision. Hence A and C only.

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CUET Business Studies Past Year Questions (Topic-Wise)