CUET Business Studies MCQs Unit IX Business Finance

Refer to CUET Business Studies MCQs Unit IX Business Finance provided below available for download in Pdf. The MCQ Questions for UG Business Studies with answers are aligned as per the latest syllabus and exam pattern suggested by CUET, NCERT and KVS. Multiple Choice Questions for Unit IX Business Finance are an important part of exams for UG Business Studies and if practiced properly can help you to improve your understanding and get higher marks. Refer to more Chapter-wise MCQs for CUET UG Business Studies and also download more latest study material for all subjects

MCQ for UG Business Studies Unit IX Business Finance

UG Business Studies students should refer to the following multiple-choice questions with answers for Unit IX Business Finance in UG.

Unit IX Business Finance MCQ Questions UG Business Studies with Answers

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Question:  The Cheapest source of finance is:.

a. Debenture

b. Equity share capital

c. Preference share

d. Retained earnings

Answer: D

Question: Financial leverage is called favourable if:

a. Return on investment is lower than the cost of debt.

b. ROI is higher than the cost of Debt

c. Debt is easily available.

d. If the degree of existing financial leverage is low.

Answer: B

Question: A fixed asset should be financed through:

a. A Long-term liability

b. A Short-term liability

c. A Medium-term liability

d. A Mix of long- and short-term liabilities

Answer: A

Question: Other things remaining the same, an increase in the tax rate on corporate profit will

a. Make the debt relatively cheaper

b. Make the debt relatively the dearer

c. Have no impact on the cost of debt

d. We can’t say

Answer: A

Question: Higher Working capital usually results in:

a. Higher current ratio, higher risk and higher profits

b. Lower current ratio, higher risk and profits

c. Higher equity, lower risk and lower profits

d. Lower equity, lower risk and higher profits.

Answer: A

Question: Current assets of a business firm should be financed through:

a. Current liability only

b. Long term liability only

c. Fixed liabilities only

d. Both types (i.e., long- and short-term liabilities)

Answer: A

Question: A decision to acquire a new and modern plant to upgrade an old one is a

a. Financing decision

b. Working capital decision

c. Investment decision

d. None of the above

Answer: C

Question: Current assets are those assets which get converted into cash:

a. Within six months

b. Within one year

c. Between one year and three years

d. Between three and five years.

Answer: B

Question: Companies with a higher growth potential are likely to

a. Pay lower dividends

b. Pay higher Dividends

c. Dividends are not affected

d. None of the above

Answer: A

Question: Higher debt – equity ratio results in:

a. Lower financial risk

b. Higher degree of operating risk

c. Higher degree of financial risk

d. Higher EPS.

Answer: C

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MCQs for Business Studies CUET UG Unit IX Business Finance

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Unit IX Business Finance MCQs Business Studies CUET UG

All MCQs given above for UG Business Studies have been made as per the latest syllabus and books issued for the current academic year. The students of UG can refer to the answers which have been also provided by our teachers for all MCQs of Business Studies so that you are able to solve the questions and then compare your answers with the solutions provided by us. We have also provided lot of MCQ questions for UG Business Studies so that you can solve questions relating to all topics given in each chapter. All study material for UG Business Studies students have been given on studiestoday.

Unit IX Business Finance CUET UG MCQs Business Studies

Regular MCQs practice helps to gain more practice in solving questions to obtain a more comprehensive understanding of Unit IX Business Finance concepts. MCQs play an important role in developing understanding of Unit IX Business Finance in CUET UG. Students can download and save or print all the MCQs, printable assignments, practice sheets of the above chapter in UG Business Studies in Pdf format from studiestoday. You can print or read them online on your computer or mobile or any other device. After solving these you should also refer to UG Business Studies MCQ Test for the same chapter

CUET MCQs Business Studies UG Unit IX Business Finance

CUET UG Business Studies best textbooks have been used for writing the problems given in the above MCQs. If you have tests coming up then you should revise all concepts relating to Unit IX Business Finance and then take out print of the above MCQs and attempt all problems. We have also provided a lot of other MCQs for UG Business Studies which you can use to further make yourself better in Business Studies

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Multiple Choice Questions (MCQs) for Unit IX Business Finance UG Business Studies are objective-based questions which provide multiple answer options, and students are required to choose the correct answer from the given choices.

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