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Which of the… (Class 12 Business Studies 2026, Q8)

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Business StudiesCBSE Class 12 · Board exam 2026, set 66/5/1 · 1 mark · MCQ

CBSE Class 12 Business Studies 2026: question 8

Set in the CBSE Class 12 board exam of 2026, paper 66/5/1, section A, question 8, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q8 · 1 mark · MCQFinancial Management

Which of the following is not a factor affecting capital structure of a company ?

  1. (A)Cash flow position
  2. (B)Return on investment
  3. (C)Financing alternatives
  4. (D)Stock market conditions

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 66/5/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Which factor is from the fixed capital list?

Hint 2

Leasing is a financing alternative.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Cash flow position, return on investment and stock market conditions all affect the choice of debt and equity.

  2. Financing alternatives (e.g. leasing) affect the requirement of fixed capital, not capital structure. Option (C).

    1 mark

Answer: (C) Financing alternatives

Where the marks are

  • Financing alternatives belong to fixed capital (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Financial Management, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 66/5/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.