High leverage means:
Correct answer is: B. High risk
More debt increases risk.
Which is not a capital budgeting technique?
Correct answer is: D. Current ratio
Current ratio is liquidity measure.
Which is a long-term source of finance?
Correct answer is: C. Equity shares
Equity is long-term financing.
Cost of capital is:
Correct answer is: A. Return expected by investors
It reflects investor expectations.
Risk-return tradeoff means:
Correct answer is: C. High risk high return
Higher risk gives higher return.
Financial planning involves:
Correct answer is: C. Both short and long term
It covers all financial decisions.
Which ratio measures profitability?
Correct answer is: C. Net profit margin
It shows earning efficiency.
Which is not a function of finance manager?
Correct answer is: C. Production decision
Production is not finance function.