Teaching Haryana (HPSC) Assistant Professor Mock Test 2025 Business Studies Business Finance and Marketing Financial Markets
Identify the correct statements in the context of trading on equity.
A. Trading on equity refers to borrowing funds to invest in assets that generate a higher rate of return than the cost of borrowing.
B. Trading on equity increases the financial risk of a company.
C. Trading on equity is a strategy used to increase the earnings per share (EPS).
D. Companies engaged in trading on equity are legally obligated to pay a higher dividend to shareholders.
E. Trading on equity is considered a conservative financial strategy.
Choose the correct answer from the options given below.
1
A, B and C only
2
A, B and D only
3
B, D and E only
4
A, B, C, D and E only
5
Question Not Attempted