Financial risk arises due to the:

variability of returns due to fluctuations in the securities market
changes in prevailing interest rates in the market
leverage used by the company
liquidity of the assets of the company
liquidity of the assets of the company  

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ABC Ltd. has a Current Ratio of 1.5: 1 and Net Current Assets of Rs. 5,00,000. What are the Current Assets:
A. Rs. 5,00,000
B. Rs. 10,00,000
C. Rs. 15,00,000
D. Rs. 25,00,000
Dividend Payout Ratio is:
A. C
B. DPS รƒโ€ข EPS
C. Pref. Dividend รƒโ€ข PAT
D. Pref. Dividend รƒโ€ข Equity Dividend
The money markets deal with:
A. Securities with a life of more than one year
B. short-term securities
C. Securities such as common stock
D. None of these
Traditional approach confines finance function only to ______ funds.
A. Raising
B. Mobilizing
C. Utilizing
D. Financing
Short “โ€œ term interest rates, in a normal economy, are generally ___________ than long “โ€œ term rates:
A. Higher
B. The same
C. Lower
D. None of the above
Insufficient working capital results in:
A. Block of cash
B. Loosing interests
C. Lack of production
D. Lack of smooth flow of production
Financial Management is mainly concerned with _______:
A. arrangement of funds
B. all aspects of acquiring and utilizing financial resources for firm’s activities
C. efficient Management of every business
D. profit maximization

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