CUET Business Studies - Business Studies - Business Finance | Free Questions - Page 8

Q1:

2023: 29 May Shift 2

Business Studies

>

Business Finance

Easy

The primary aim of financial management is :-

Maximise profit of firm

Maximise sales of firm

Maximise shareholders' wealth

Maximise number of customer of firm

Correct Answer

Option 3

Correct Answer

Explanation

Q2:

2023: 29 May Shift 2

Business Studies

>

Business Finance

Medium

Identify the rights provided to consumers by the Consumer Protection Act 2019

A. Right to Safety

B. Right to be Informed

C. Right to choose

D. Right to be heard

E. Right to be assured

Choose the correct answer from the options given below:

A, B, C and D only

A, B, C and E only

A, B, D and E only

A, B and C only

Correct Answer

Option 3

Correct Answer

Explanation

Q3:

2023: 29 May Shift 2

Business Studies

>

Business Finance

Easy

Select from following who is considered Risk taker

Manager

Customer

Entrepreneur

Government

Correct Answer

Option 3

Correct Answer

Explanation

Q4:

2023: 29 May Shift 2

Business Studies

>

Business Finance

Medium

Arrange the steps of Trading and Settlement procedure in Securities

A. Open a demat account

B. Place an order with the broker

C. Sign a broker-client agreement

D. Broker match the share price available

E. Broker issue a trade confirmation slip

Choose the correct answer from the options given below:

A, B, C, D, E

E, D, C, B, A

C, A, B, D, E

C, A, D, B, E

Correct Answer

Option 3

Correct Answer

Explanation

Q5:

2023: 29 May Shift 2

Business Studies

>

Business Finance

Medium

Capital structure should emphasize on:-

Increasing the turnover of firm

Increasing the assets and liabilities of firm

Increasing the shareholders wealth

Increasing voting right of shareholders

Correct Answer

Option 3

Correct Answer

Explanation

Q6:

2023: 29 May Shift 2

Business Studies

>

Business Finance

Easy

Identify the trend in stock market when equity shares are more easily sold even at higher price

Bearish

Bullish

Horse trading

Badla

Correct Answer

Option 2

Correct Answer

Explanation

Q7:

2022: 28 May Shift 2

Business Studies

>

Business Finance

Medium

Identify the factor which does not affect the financing decision of an organisation :

Control Consideration

Risk

Investment Criteria involved

Cost

Correct Answer

Option 3

Correct Answer

Explanation

Q8:

2022: 28 May Shift 2

Business Studies

>

Business Finance

Medium

Identify the pair which does not affect the choice of capital structure :

Flexibility and Control

Cost of Equity and Goodwill

Risk consideration and ROI

Cost of debt and Floatation Cost

Correct Answer

Option 2

Correct Answer

Explanation

Q9:

2022: 28 May Shift 2

Business Studies

>

Business Finance

Medium

Match List - I with List - II.

List - I	List - II
(A) The mix between owners' and borrowed funds	(I) Financial Planning
(B) Quantum of finance to be raised from various long term sources	(II) Investment Decisions
(C) How the firm's funds are invested	(III) Capital Structure
(D) Financial blue print of an organisation	(IV) Financing Decisions

Choose the correct answer from the options given below :

(A)-(IV), (B)-(III), (C)-(II), (D)-(I)

(A)-(III), (B)-(I), (C)-(II), (D)-(IV)

(A)-(III), (B)-(IV), (C)-(II), (D)-(I)

(A)-(III), (B)-(II), (C)-(IV), (D)-(I)

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

2022: 28 May Shift 2

Business Studies

>

Business Finance

Medium

Identify the correct statements in the context of financial decision :

(A) Financial decision includes investment decision, financing decision and dividend decision

(B) Short term investment decision is also known as 'capital budgeting decision'

(C) Short term investment decision is also known as 'Working capital decision'

(D) Investment decision includes raising funds from equity or debt

(E) Investment decision includes short term and long term investment decision

Choose the correct answer from the options given below :

(A), (C) and (E) only

(A), (B) and (C) only

(C), (D) and (E) only

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation

Q11:

2022: 6 Oct Shift 1

Business Studies

>

Business Finance

Easy

The cost in the process of raising fund through equity is known as _____.

Financial risk

Cost of debt

Floatation cost

Cost of capital

Correct Answer

Option 3

Correct Answer

Explanation

Q12:

2022: 6 Oct Shift 1

Business Studies

>

Business Finance

Easy

A trading organisation comparatively needs _____ investment in fixed assets as compared to a manufacturing organisation

Lesser

larger

Moderate

Negligible

Correct Answer

Option 1

Correct Answer

Explanation

Q13:

2022: 6 Oct Shift 1

Business Studies

>

Business Finance

Medium

Rajat is planning the break up of his finance to know the amount of capital that he will utilize to purchase fixed assets and current assets. Identify the financial decision taken by Rajat

Investment decision

Financial decision

Dividend decision

Capital structure

Correct Answer

Option 1

Correct Answer

Explanation

Q14:

2022: 6 Oct Shift 1

Business Studies

>

Business Finance

Medium

Debt normally does not cause _____.

a dilution of control

a dilution of flexibility

a dilution of cost

a dilution of equity

Correct Answer

Option 1

Correct Answer

Explanation

Q15:

2022: 30 Aug Shift 1

Business Studies

>

Business Finance

Medium

Dividend decision is affected by many factors. Identify the factors affecting dividend decisions.

(a) State of Capital market

(b) Control Consideration

(c) Shareholder's Preference

(d) Taxation Policy

(e) Floatation Cost

Choose the most appropriate answer from the options given below :

(a), (b) and (c) only

(c) and (d) only

(c), (d) and (e) only

(b), (c) and (d) only

Correct Answer

Option 2

Correct Answer

Explanation

Q16:

2022: 30 Aug Shift 1

Business Studies

>

Business Finance

Easy

Read the passage carefully and answer the question.

Mr. Rajesh Gulati is the Finance Manager of 'Health and Life Ltd.' a company dealing with health and organic food items. The company sells its products in smaller quantities in attractive containers. Moreover they have also decided to provide an additional layer of packaging for their products for the purpose of protections along with necessary storage, identification and even convenient transportation.

Keeping up with the latest packaging technology the company decided to upgrade its machinery. This, however, involved a major decision making as to how funds should be invested, so what the company is able to earn highest possible return.

Mr. Gulati estimated the amount of funds required for this purpose. He began with the preparation of sales forecast for the next four years.

He also collected the relevant data about the profit estimates in the coming years. By doing this he wanted to be sure about the availability of funds from internal sources. For the remaining funds he is trying to find out alternative sources.

Identify the concept of Financial Management being mentioned in the above case.

Wealth Maximisation

Financial Planning

Financial Transactions

Financial Decisions

Correct Answer

Option 2

Correct Answer

Explanation

Q17:

2022: 30 Aug Shift 1

Business Studies

>

Business Finance

Medium

Read the passage carefully and answer the question.

Mr. Rajesh Gulati is the Finance Manager of 'Health and Life Ltd.' a company dealing with health and organic food items. The company sells its products in smaller quantities in attractive containers. Moreover they have also decided to provide an additional layer of packaging for their products for the purpose of protections along with necessary storage, identification and even convenient transportation.

Keeping up with the latest packaging technology the company decided to upgrade its machinery. This, however, involved a major decision making as to how funds should be invested, so what the company is able to earn highest possible return.

Mr. Gulati estimated the amount of funds required for this purpose. He began with the preparation of sales forecast for the next four years.

He also collected the relevant data about the profit estimates in the coming years. By doing this he wanted to be sure about the availability of funds from internal sources. For the remaining funds he is trying to find out alternative sources.

The various objectives of financial planning concept identified in the case study are :

(a) To see for stock market reactions

(b) To ensure availability of funds whenever required

(c) To prepare financial budget

(d) To take care of purchasing raw material

(e) To see that the firm does not raise resources unnecessarily

Choose the most appropriate answer from the options given below :

(a) and (b) only

(b) and (c) only

(d) and (b) only

(b) and (e) only

Correct Answer

Option 4

Correct Answer

Explanation

Q18:

2022: 30 Aug Shift 1

Business Studies

>

Business Finance

Easy

Read the passage carefully and answer the question.

Mr. Rajesh Gulati is the Finance Manager of 'Health and Life Ltd.' a company dealing with health and organic food items. The company sells its products in smaller quantities in attractive containers. Moreover they have also decided to provide an additional layer of packaging for their products for the purpose of protections along with necessary storage, identification and even convenient transportation.

Keeping up with the latest packaging technology the company decided to upgrade its machinery. This, however, involved a major decision making as to how funds should be invested, so what the company is able to earn highest possible return.

Mr. Gulati estimated the amount of funds required for this purpose. He began with the preparation of sales forecast for the next four years.

He also collected the relevant data about the profit estimates in the coming years. By doing this he wanted to be sure about the availability of funds from internal sources. For the remaining funds he is trying to find out alternative sources.

Identify the financial decision taken by 'Health and Life Ltd.' that involves allocation of funds.

Investment decision

Dividend decision

Financing decision

Management decision

Correct Answer

Option 1

Correct Answer

Explanation

Q19:

2022: 30 Aug Shift 1

Business Studies

>

Business Finance

Easy

Read the passage carefully and answer the question.

Mr. Rajesh Gulati is the Finance Manager of 'Health and Life Ltd.' a company dealing with health and organic food items. The company sells its products in smaller quantities in attractive containers. Moreover they have also decided to provide an additional layer of packaging for their products for the purpose of protections along with necessary storage, identification and even convenient transportation.

Keeping up with the latest packaging technology the company decided to upgrade its machinery. This, however, involved a major decision making as to how funds should be invested, so what the company is able to earn highest possible return.

Mr. Gulati estimated the amount of funds required for this purpose. He began with the preparation of sales forecast for the next four years.

He also collected the relevant data about the profit estimates in the coming years. By doing this he wanted to be sure about the availability of funds from internal sources. For the remaining funds he is trying to find out alternative sources.

Identify the financial decision of Mr. Gulati about the requirement of finance to be raised for the company from various sources.

Investment decision

Management decision

Financing decision

Dividend decision

Correct Answer

Option 3

Correct Answer

Explanation

Q20:

2022: 20 Aug Shift 1

Business Studies

>

Business Finance

Medium

Identify the factors which affect the dividend decision.

A. Stock market Reaction

B. Floatation Cost

C. Legal Constraints

D. Fixed operating cost

E. Cost of equity

A and C only

B and D only

E and C only

A and B only

Correct Answer

Option 1

Correct Answer

Explanation

Q21:

2022: 20 Aug Shift 1

Business Studies

>

Business Finance

Easy

Match the following components with the given information

List I	List II
A. Capital structure	I. Speculator who expects the prices to go down
B. Bear	II. Speculator expecting a rise in the prices
C. Bull	III. Proportion of debt and equality in total Capital
D. Shareholder's Wealth	IV. Maximisation of the market value of equity shares

A-III, B-I, C-II, D-IV

A-I, B-II, C-III, D-IV

A-IV, B-II, C-III, D-I

A-II, B-I, C-III, D-IV

Correct Answer

Option 1

Correct Answer

Explanation

Q22:

2022: 20 Aug Shift 1

Business Studies

>

Business Finance

Easy

"A company has the policy of giving liberal credit to its customers in order to increase the sales."

Identify the factor affecting working capital requirement in the above situation.

Business cycle

Operating efficiency

Credit Availed

Credit Allowed

Correct Answer

Option 4

Correct Answer

Explanation

Q23:

2022: 20 Aug Shift 1

Business Studies

>

Business Finance

Easy

Given below are the examples of current Assets. Identify which of them is highly liquid?

Marketable securities

Cash in hand

Debtors

Prepaid expenses

Correct Answer

Option 2

Correct Answer

Explanation

Q24:

2022: 20 Aug Shift 1

Business Studies

>

Business Finance

Hard

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

20%

25%

30%

40%

Correct Answer

Option 1

Correct Answer

Explanation

Q25:

2022: 20 Aug Shift 1

Business Studies

>

Business Finance

Medium

Under which of the following situation, a company is likely to get the benefit of trading on equity?

Only equity in capital structure

Return on investment > Cost of debt

Return on investment < Cost of debt

Only debt in capital structure

Correct Answer

Option 2

Correct Answer

Explanation

Q26:

2022: 17 Aug Shift 1

Business Studies

>

Business Finance

Easy

Identify the financial concept which refers to the preparation of financial blueprint of an organisation's future operation.

Financial Management

Financial Planning

Financial Leverage

Trading on equity

Correct Answer

Option 2

Correct Answer

Explanation

Q27:

2022: 17 Aug Shift 1

Business Studies

>

Business Finance

Easy

Name the primary objective of Financial Management.

Maximising profits

Maximising Sales

Maximising Cost

Maximising Share holder's Wealth

Correct Answer

Option 4

Correct Answer

Explanation

Q28:

2022: 17 Aug Shift 1

Business Studies

>

Business Finance

Medium

Match List I with List II

List I	List II
A. Investment decisions	I. Source of raising finance
B. Financing decisions	II. Proportion of debt and equity
C. Dividend decisions	III. Long term or short term assets
D. Capital Structure	IV. Amount of money to be retained

Choose the correct answer from the options given below:

A-III, B-IV, C-II, D-I

A-IV, B-I, C-III, D-II

A-III, B-I, C-II, D-IV

A-III, B-I, C-IV, D-II

Correct Answer

Option 4

Correct Answer

Explanation

Q29:

2022: 17 Aug Shift 1

Business Studies

>

Business Finance

Easy

It refers to a position when a company is unable to meet its fixed financial charges namely interest payment, preference dividend and repayment obligations.

Name the concept highlighted in the above lines:

Financial Management

Financial Planning

Financial Risk

Financial Resources

Correct Answer

Option 3

Correct Answer

Explanation

Q30:

2022: 17 Aug Shift 1

Business Studies

>

Business Finance

Easy

From the following source of finance, identify the source that is not related to Owner's fund:

Equity Share Capital

Preference Share Capital

Retained Earning

Debentures

Correct Answer

Option 4

Correct Answer

Explanation

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