Subject - Business Ethics:

Corporate Finance

MCQ - 78-2183

Question:

Profitability and liquidity move in ________ direction whereas risk and profitability and risk move in _________ direction.

Same; inverse
Inverse; same
Inverse; opposite
Inverse; same

Correct Answer: B

Explanation:

Profitability varies inversely with liquidity; increased liquidity can be achieved at the expense of (decreased) profitability Profitability & risk have same direction; in order to have greater profitability, we need to take greater risk.

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80 MCQ for effective preparation of the test of Corporate Finance of Business Ethics section.

Read the MCQ statement: Profitability and liquidity move in ________ direction whereas risk and profitability and risk move in _________ direction. , keenly and apply the method you have learn through the video lessons for Corporate Finance to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 78-2183.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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