Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): The risk involved in the business should not be discussed in the beginning.
Reason (R): The business having more risks should issue ownership securities only.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): With rising prices, larger amounts are required even to maintain a constant volume of production and sales.
Reason (R): The working capital requirement of a business become higher with higher rate of inflation.
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): A sound financial plan should be rigid.
Reason (R): In a financing programme, flexibility for future should not be allowed.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): In peak season, because of higher level of activity, larger amount of working capital is required.
Reason (R): Most business have some seasonality in their operations.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): Business can survive without earning profit.
Reason (R): Profit earning is the main aim of every economic activity.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): A labour-intensive organisation requires higher investment in plant and machinery.
Reason (R): Those manufacturing enterprises which make use of modern and automatic machines need large amount of fixed capital.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): Routine function of finance manager include record keeping and reporting.
Reason (R): Preparation of various financial statements is not a function of finance manager.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): A trading organisation usually needs a smaller amount of working capital compared to a manufacturing organisation.
Reason (R): The basic nature of a business influences the amount of working capital required.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): Modem approach is not a continuous process.
Reason (R): Financial manager has to play an important role only at the beginning of enterprise.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): The higher the ICR, lower shall be the risk of company failing to meet its interest payment obligations.
Reason (R): If the ROI of the company is higher, it can choose to use trading on equity to increase its EPS, i.e., its ability to use debt is greater.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): Traditional approach to financial management ignore routine problems.
Reason (R): It does not lay focus on day-to-day financial problems of business enterprises.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): A higher DSCR indicates better ability to meet cash commitments.
Reason (R): If a firm uses its debt potential to the full, it loses flexibility to issue further debt.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): The capital structure should involve minimum risk of financial insolvency.
Reason (R): The use of excessive debt threatens the solvency of the company.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): Capital structure of a company affects only the profitability.
Reason (R): A capital structure will be said to be optimal when the proportion of debt and equity is such that it results in an increase in the value of the equity share.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): Risk principle of capital structure is one that minimise cost of capital structure.
Reason (R): According to this principle, reliance is placed more on equity for financial purpose.
53 videos|205 docs|49 tests
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53 videos|205 docs|49 tests
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