Question : It refers to the proportion of debt in overall capital. Which concept is highlighted in the given statement?
Option 1: Financial management
Option 2: Financial planning
Option 3: Financial leverage
Option 4: None of the above
Correct Answer: Financial leverage
Solution : Financial leverage refers to the proportion of debt in overall capital. As the financial leverage increases the cost of funds declined because of increased use of cheaper debt but the financial risk increases.
Hence, option C is correct.
Question : It is concerned with optimal procurement as well as the uses of finance. Which of the following statement is highlighted in the given statement?
Question : It refers to that part of total capital which is required for holding current assets. Which concept is highlighted in the given statement?
Question : One of the concepts of financial management takes into consideration the growth, performance, investment, and requirement of funds for a given period. Which concept is highlighted in the given statement?
Question : It is meant for making permanent or long term needs of the business. Which concept is highlighted in the given statement?
Question : It is defined as excess of current assets over current liabilities. Which concept is highlighted in the given statement?
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