+91-8076753736[email protected]
logo
logo
-->

Financial Management

Question
CBSEENBS12004231
Wired Faculty App

What is Financial Risk? Why does it arise?

Solution

It refers to the risk of the company not being able to cover its fixed financial costs. The higher levels of risks are attached to higher degrees of financial leverage. With the increase in fixed financial costs, the company is also required to raise its operating profit (EBIT) to meet financial charges. If the company cannot cover these financial charges, it can be forced into liquidation.

Some More Questions From Financial Management Chapter

What are the main objectives of financial management? Briefly explain.

Or

State the primary objective of financial management.

How the wealth of shareholders can be computed?

What is meant by Financial Management?

Every manager has to take three major decisions while performing the finance function. Explain them.

Explain any six factors affecting the financing decision of a company.

Explain any six factors affecting the dividend decision of a company.

What is meant by Dividend decision? State any four factors affecting the Dividend decision.

What is meant by Financing decision? State any four factors affecting the financing decision.

 

Explain briefly the factors affecting the investment decision.

Explain, in brief, any five factors that should be taken into consideration while determining the long-term dividend policy.

Or

Explain factors affecting the dividend policy of a company.

Mock Test Series

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation