Question : Which of the following statements is incorrect?

 

Option 1: The total risk depends on both the business risk and the financial risk.
 

Option 2: Issue of debt does not dilute the control of equity shareholders.
 

Option 3: Operating cost refers to the cost involved in issue of securities
 

Option 4: None of the above

Question : Which cost refers to the cost involved in issue of securities?

Option 1: Flotation cost

Option 2: Operating cost

Option 3: Both a and b

Option 4: None of the above

Question : It is the risk of  inability to meet fixed financial charges. Which of the following process is highlighted in the given statement?

Option 1: Financial planning

Option 2: Financial risk

Option 3: Business finance

Option 4: Financial management

Question : Which of the following statements is incorrect?
 

Option 1: Fixed capital affects the long term growth of the business.
 

Option 2: Fixed capital involves large amount of funds.
 

Option 3: There is no risk involved in fixed capital.
 

Option 4: None of the above
 

Question : Which total cost is highlighted in the given statement?
Statement: It does not vary directly with level of output like rent or insurance.
 

Option 1: Fixed cost

Option 2: Variable cost

Option 3: Semi variable cost

Option 4: None of the above