Question : Which of the following statement is correct?
 

Option 1: Financial risk refers to risk of enability to meet a fixed operating costs.
 

Option 2: Business risk refers to risk of inability to meet fixed financial charges.
 

Option 3: Flotation cost refers to cost involved in the 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 : 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 of the following statements is incorrect?

Option 1: Decrease in Long term Debts decreases the Debt-Equity Ratio

Option 2: Increase in Long term Debts,increases the Debt-Equity Ratio

Option 3: Decrease in Shareholder’s Funds increases the Debt-Equity Ratio

Option 4: None of the above

Question : Which of the following statements is incorrect?

Option 1: Decrease in Long term Debts decreases the Debt-Equity Ratio

Option 2: Increase in Long term Debts,increases the Debt-Equity Ratio

Option 3: Decrease in Shareholder’s Funds increases the Debt-Equity Ratio

Option 4: None of the above